Stock Analysis

Pamica Technology And 2 Other Undiscovered Gems in China

Published

As Chinese equities face challenges amid unexpected rate cuts and a mixed economic outlook, investors are increasingly looking for opportunities in the small-cap sector. In this environment, identifying stocks with strong fundamentals and growth potential becomes crucial. Pamica Technology and two other undiscovered gems in China present compelling cases for consideration.

Top 10 Undiscovered Gems With Strong Fundamentals In China

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Beijing Haohan Data TechnologyLtd0.68%9.58%15.38%★★★★★★
Jiangsu JIXIN Wind Energy Technology4.12%0.51%12.27%★★★★★★
Hangzhou Fortune Gas Cryogenic Group4.17%12.52%15.47%★★★★★★
Shanghai Xujiahui CommercialNA-34.49%-34.61%★★★★★★
Wuxi Taclink Optoelectronics Technology1.29%24.61%-1.11%★★★★★★
Xiangyang Changyuandonggu Industry30.71%-11.70%-19.83%★★★★★★
Zhejiang Wellsun Intelligent TechnologyLtd2.48%30.08%34.66%★★★★★☆
Zhe Jiang Dayang Biotech Group34.64%14.18%-1.22%★★★★★☆
Xinya Electronic75.53%35.77%6.22%★★★★☆☆
Chongqing Gas Group23.23%9.54%1.00%★★★★☆☆

Click here to see the full list of 995 stocks from our Chinese Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Pamica Technology (SZSE:001359)

Simply Wall St Value Rating: ★★★★★☆

Overview: Pamica Technology Corporation engages in the research and development, production, and sale of mica insulation materials, glass fiber cloth, and new energy insulation materials with a market cap of CN¥3.84 billion.

Operations: Pamica Technology derives its revenue primarily from the Non-metallic Mineral Products Industry, generating CN¥921.64 million, while other business activities contribute CN¥5.21 million.

Pamica Technology's earnings growth of 25.4% over the past year significantly outpaced the Electrical industry’s 0.6%. The company is profitable, with a Price-To-Earnings ratio of 23.2x, which is below the Chinese market average of 27.4x. Recent events include a cash dividend approval and board elections, reflecting active governance changes. With high-quality earnings and more cash than total debt, Pamica seems well-positioned for future stability and growth in its sector.

SZSE:001359 Debt to Equity as at Jul 2024

Jiangxi Bestoo EnergyLtd (SZSE:001376)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangxi Bestoo Energy Co., Ltd. offers centralized heating services for industrial parks and downstream industrial customers in China, with a market cap of CN¥8.07 billion.

Operations: Bestoo Energy generates revenue through centralized heating services for industrial parks and downstream industrial customers in China. The company has a market cap of CN¥8.07 billion.

Jiangxi Bestoo Energy Ltd. has shown promising growth, with earnings increasing by 31.2% over the past year, outpacing the Water Utilities industry’s 1.6%. The company's debt to equity ratio improved from 27.7% to 24% in five years, and its net debt to equity ratio stands at a satisfactory 0.3%. Additionally, the firm repurchased shares in the latest year, reflecting confidence in its future prospects amidst high-quality earnings and well-covered interest payments (26.2x EBIT).

SZSE:001376 Debt to Equity as at Jul 2024

Hicon Network Technology (Shandong)Ltd (SZSE:301262)

Simply Wall St Value Rating: ★★★★★★

Overview: Hicon Network Technology (Shandong) Co., Ltd. (SZSE:301262) operates in the technology sector, specializing in network solutions and services, with a market cap of CN¥8.95 billion.

Operations: Hicon Network Technology (Shandong) Co., Ltd. generates revenue primarily from network solutions and services. The company has a market cap of CN¥8.95 billion.

Hicon Network Technology (Shandong) Ltd. stands out for its debt-free status over the past five years, positioning it favorably in the market with a Price-To-Earnings ratio of 21.7x compared to the CN market's 27.4x. Despite negative earnings growth of -1.4% last year, it still outperformed its industry average of -15.8%. The company has consistently generated positive free cash flow, reaching CNY 350M as of July 2024, and recently approved a cash dividend payout plan at CNY 1.92 per 10 shares for August distribution.

SZSE:301262 Earnings and Revenue Growth as at Jul 2024

Seize The Opportunity

Looking For Alternative Opportunities?

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.

Valuation is complex, but we're here to simplify it.

Discover if Hicon Network Technology (Shandong)Ltd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com