3 Asian Stocks That May Be Trading Below Intrinsic Value By Up To 49%

As global markets grapple with economic uncertainty and inflation fears, Asian stocks have shown resilience amid these challenges. In this environment, identifying undervalued stocks that may be trading below their intrinsic value can offer potential opportunities for investors seeking to navigate the complexities of the current market landscape.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

Click here to see the full list of 274 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Mao Geping Cosmetics (SEHK:1318)

Overview: Mao Geping Cosmetics Co., Ltd. operates in China, offering color cosmetics and skincare products under the MAOGEPING and Love Keeps brands, with a market cap of HK$28.59 billion.

Operations: The company generates revenue of CN¥3.88 billion from its personal products segment, which includes color cosmetics and skincare items under its MAOGEPING and Love Keeps brands in China.

Estimated Discount To Fair Value: 23.6%

Mao Geping Cosmetics is trading at 23.6% below its estimated fair value of HK$142.94, suggesting it may be undervalued based on cash flows. The company reported a revenue increase to CNY 3.88 billion for 2024, with net income rising to CNY 880.61 million, despite a drop in basic earnings per share from CNY 3.31 to CNY 2.18 year-over-year. Forecasts indicate significant growth in both revenue and earnings, outpacing the Hong Kong market averages significantly over the next few years.

• The analysis detailed in our Mao Geping Cosmetics growth report hints at robust future financial performance.
• Dive into the specifics of Mao Geping Cosmetics here with our thorough financial health report.

RemeGen (SEHK:9995)

Overview: RemeGen Co., Ltd. is a biopharmaceutical company focused on discovering, developing, and commercializing biologics for autoimmune, oncology, and ophthalmic diseases in Mainland China and the United States with a market cap of approximately HK$21.49 billion.

Operations: RemeGen generates revenue primarily from its biopharmaceutical research, service, production, and sales segment, amounting to CN¥1.72 billion.

Estimated Discount To Fair Value: 49%

RemeGen is trading at 49% below its estimated fair value of HK$51.32, highlighting potential undervaluation based on cash flows. The company's revenue for 2024 increased to CNY 1.72 billion, though it still reported a net loss of CNY 1.47 billion. Despite current losses, forecasts suggest RemeGen's earnings will grow significantly and the company is expected to achieve profitability within three years, driven by innovative therapies like Disitamab Vedotin for bladder cancer treatment.

• In light of our recent growth report, it seems possible that RemeGen's financial performance will exceed current levels.
• Take a closer look at RemeGen's balance sheet health here in our report.

Olympic Circuit Technology (SHSE:603920)

Overview: Olympic Circuit Technology Co., Ltd specializes in manufacturing and selling rigid PCBs, with a market cap of CN¥21.79 billion.

Operations: The company generates revenue from its Electronic Components & Parts segment, amounting to CN¥4.85 billion.

Estimated Discount To Fair Value: 12.7%

Olympic Circuit Technology is trading at CN¥30.29, below its estimated fair value of CN¥34.69, suggesting it may be undervalued based on cash flows. Despite recent shareholder dilution and share price volatility, the company has shown strong earnings growth of 18.3% over the past year and is expected to maintain significant profit growth of 25.31% annually over the next three years, outpacing market averages in China with robust revenue forecasts as well.

• The growth report we've compiled suggests that Olympic Circuit Technology's future prospects could be on the up.
• Delve into the full analysis health report here for a deeper understanding of Olympic Circuit Technology.

Where To Now?

• Dive into all 274 of the Undervalued Asian Stocks Based On Cash Flows we have identified here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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