Undiscovered Global Gems With Promising Potential In June 2025

Simply Wall St

As global markets grapple with geopolitical tensions and fluctuating economic indicators, small-cap stocks have faced a challenging environment, highlighted by recent declines in the S&P MidCap 400 and Russell 2000 indexes. Despite these hurdles, opportunities remain for discerning investors who can identify stocks with strong fundamentals and growth potential amidst broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Indofood Agri Resources30.05%2.36%41.87%★★★★★★
Mitake InformationNA9.80%11.24%★★★★★★
MOBI Industry6.50%5.60%24.00%★★★★★★
Sure Global TechNA11.95%18.65%★★★★★★
National General Insurance (P.J.S.C.)NA14.55%29.05%★★★★★☆
Chongqing Machinery & Electric25.60%7.97%18.73%★★★★★☆
Tait Marketing & Distribution0.71%8.00%12.85%★★★★★☆
Sing Investments & Finance0.29%9.07%12.24%★★★★☆☆
Pizu Group Holdings48.10%-4.86%-19.23%★★★★☆☆
Fengyinhe Holdings0.60%39.37%65.41%★★★★☆☆

Click here to see the full list of 3182 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Wuxi Huadong Heavy Machinery (SZSE:002685)

Simply Wall St Value Rating: ★★★★★☆

Overview: Wuxi Huadong Heavy Machinery Co., Ltd. is a company based in the People's Republic of China that specializes in the manufacture and sale of container handling equipment and intelligent CNC machine tools, with a market capitalization of CN¥7.14 billion.

Operations: The company generates revenue primarily through the sale of container handling equipment and intelligent CNC machine tools. Its market capitalization stands at CN¥7.14 billion.

Wuxi Huadong Heavy Machinery, a smaller player in the machinery sector, has shown promising growth with its recent financial performance. In the first quarter of 2025, sales reached CNY 214.92 million from CNY 152.3 million a year earlier, while net income rose to CNY 34.37 million from CNY 20.87 million. This turnaround is significant as it became profitable last year after previously incurring losses like the net loss of CNY 811 million in 2024 compared to a net income of CNY 123.04 million this year. The company also reduced its debt-to-equity ratio from 15.8% to a more manageable level at 8.6% over five years, indicating improved financial health and stability amidst market volatility.

SZSE:002685 Debt to Equity as at Jun 2025

Ji'an Mankun Technology (SZSE:301132)

Simply Wall St Value Rating: ★★★★★★

Overview: Ji'an Mankun Technology Co., Ltd. focuses on the research, development, production, and sale of printed circuit boards primarily in China with a market capitalization of approximately CN¥4.80 billion.

Operations: Ji'an Mankun Technology generates its revenue primarily from the electronic circuit manufacturing segment, which contributed CN¥1.37 billion. The company's net profit margin is an important metric to consider when evaluating its financial performance.

Ji'an Mankun Technology, a nimble player in the tech sector, has demonstrated robust financial health with earnings surging 38.5% over the past year, outpacing the electronic industry’s growth of 2.8%. Its debt-to-equity ratio has impressively decreased from 10.8% to 4.4% over five years, indicating prudent financial management. The company's recent earnings report for Q1 2025 showed sales at CNY 340.63 million compared to CNY 238.04 million last year, while net income jumped to CNY 28.19 million from CNY 6.81 million previously, reflecting its strong market position and potential for continued growth in profitability and shareholder returns through dividends approved at their AGM in May.

SZSE:301132 Earnings and Revenue Growth as at Jun 2025

Shenzhen SOFARSOLAR (SZSE:301658)

Simply Wall St Value Rating: ★★★★★☆

Overview: Shenzhen SOFARSOLAR Co., Ltd. offers solar photovoltaic and energy storage solutions for various applications across residential, commercial, industrial, and utility sectors both in China and internationally, with a market cap of CN¥11.51 billion.

Operations: SOFARSOLAR generates revenue primarily from the photovoltaic industry, amounting to CN¥2.64 billion. The company's net profit margin reflects its financial efficiency and profitability in managing costs relative to its revenue streams.

Shenzhen SOFARSOLAR, a modest player in the solar industry, has been navigating some financial turbulence. Over the past year, earnings growth was negative at 18%, contrasting with the electrical industry's average of 1%. Despite this setback, it boasts high-quality earnings and maintains more cash than its total debt. The debt to equity ratio rose from 5.3% to 19.3% over five years, indicating increased leverage. Recent events include an IPO raising CNY486 million and a dividend payout of CNY1.26 per share approved at their AGM in May 2025, reflecting shareholder commitment amidst evolving company dynamics.

SZSE:301658 Debt to Equity as at Jun 2025

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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