Asian Penny Stocks To Watch In May 2025

With the recent de-escalation of trade tensions between the U.S. and China, Asian markets have experienced a boost in investor confidence, reflected in rising stock indices. This positive sentiment creates an intriguing backdrop for exploring investment opportunities beyond well-known companies. Despite its vintage connotation, the term "penny stocks" continues to capture interest as these smaller or newer firms can present significant value when underpinned by strong financials.

Top 10 Penny Stocks In Asia

Click here to see the full list of 1,171 stocks from our Asian Penny Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Luzhou Bank (SEHK:1983)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Luzhou Bank Co., Ltd. operates in the People’s Republic of China, offering corporate and retail banking as well as financial market services, with a market cap of HK$7.45 billion.

Operations: Luzhou Bank Co., Ltd. does not report specific revenue segments.

Market Cap: HK$7.45B

Luzhou Bank has demonstrated consistent earnings growth, with a 12.6% increase over the past year, outpacing the industry average. The bank maintains an appropriate level of non-performing loans and a robust allowance for bad loans. Despite its volatile share price, Luzhou Bank trades at a significant discount to estimated fair value. Recent financial results show net income growth, supported by stable interest income and an experienced management team. However, dividend stability remains uncertain despite recent increases in proposed dividends. The board's proposal to issue new shares could impact equity structure and shareholder value moving forward.

• Click here and access our complete financial health analysis report to understand the dynamics of Luzhou Bank.
• Gain insights into Luzhou Bank's historical outcomes by reviewing our past performance report.

Star CM Holdings (SEHK:6698)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Star CM Holdings Limited focuses on producing, operating, and licensing variety program intellectual properties in China, with a market cap of approximately HK$888.74 million.

Operations: The company's revenue is primarily generated from its Diversified - Media & Entertainment segment, amounting to CN¥163.15 million.

Market Cap: HK$888.74M

Star CM Holdings, with a market cap of HK$888.74 million, faces challenges as it remains unprofitable and has seen earnings decline significantly over the past five years. Despite having no debt and sufficient cash runway for over three years, its revenue from media and entertainment dropped to CN¥163.15 million in 2024 from CN¥426.57 million the previous year. The company's recent reduction in net loss was primarily due to the absence of a prior one-off impairment loss on goodwill rather than operational improvements, as joint ventures continue to operate at a loss and programs yield low gross profit margins.

• Click to explore a detailed breakdown of our findings in Star CM Holdings' financial health report.
• Explore historical data to track Star CM Holdings' performance over time in our past results report.

Zhefu Holding Group (SZSE:002266)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Zhefu Holding Group Co., Ltd. focuses on the research, development, manufacture, installation, and service of hydropower equipment both in China and internationally, with a market cap of CN¥17.09 billion.

Operations: Zhefu Holding Group Co., Ltd. does not report specific revenue segments, but it engages in the hydropower equipment sector, serving both domestic and international markets.

Market Cap: CN¥17.09B

Zhefu Holding Group, with a market cap of CN¥17.09 billion, operates in the hydropower equipment sector and demonstrates financial stability with short-term assets exceeding both long-term and short-term liabilities. The company reported first-quarter 2025 revenue of CN¥4.94 billion, reflecting growth from the previous year, though net income slightly decreased to CN¥270.81 million. Despite a low return on equity of 8.4%, Zhefu's debt is well-covered by operating cash flow and interest payments are comfortably managed by EBIT at 22.9 times coverage, indicating strong financial management amidst an unstable dividend track record.

• Jump into the full analysis health report here for a deeper understanding of Zhefu Holding Group.
• Gain insights into Zhefu Holding Group's future direction by reviewing our growth report.

Seize The Opportunity

• Click this link to deep-dive into the 1,171 companies within our Asian Penny Stocks screener.
• Interested In Other Possibilities? Uncover 16 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs.

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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