Undervalued Penny Stocks To Watch In December 2024

Global markets have recently experienced a surge, with major indices like the Dow Jones Industrial Average and S&P 500 reaching record highs, buoyed by positive sentiment from domestic policy developments and geopolitical events. In this context of market optimism, investors may find opportunities in lesser-known sectors such as penny stocks. While the term "penny stocks" might seem outdated, it still refers to smaller or newer companies that can offer significant value when backed by strong financials.

Top 10 Penny Stocks

Name	Share Price	Market Cap	Financial Health Rating
DXN Holdings Bhd (KLSE:DXN)	MYR0.485	MYR2.41B	★★★★★★
Embark Early Education (ASX:EVO)	A$0.80	A$146.79M	★★★★☆☆
Datasonic Group Berhad (KLSE:DSONIC)	MYR0.40	MYR1.11B	★★★★★★
Hil Industries Berhad (KLSE:HIL)	MYR0.875	MYR290.45M	★★★★★★
ME Group International (LSE:MEGP)	£2.19	£825.11M	★★★★★★
Bosideng International Holdings (SEHK:3998)	HK$4.05	HK$44.6B	★★★★★★
LaserBond (ASX:LBL)	A$0.55	A$64.47M	★★★★★★
Lever Style (SEHK:1346)	HK$0.86	HK$545.92M	★★★★★★
Next 15 Group (AIM:NFG)	£4.275	£425.17M	★★★★☆☆
Secure Trust Bank (LSE:STB)	£3.69	£70.37M	★★★★☆☆

Click here to see the full list of 5,705 stocks from our Penny Stocks screener.

Let's dive into some prime choices out of the screener.

Fenbi (SEHK:2469)

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

Overview: Fenbi Ltd. is an investment holding company offering non-formal vocational education and training services in the People’s Republic of China, with a market cap of HK$5.83 billion.

Operations: The company generates revenue from two primary segments: Sales of Books, which contributed CN¥648.46 million, and Tutoring Services, which brought in CN¥2.47 billion.

Market Cap: HK$5.83B

Fenbi Ltd., with a market cap of HK$5.83 billion, has shown promising financial health by becoming profitable this year and maintaining a high Return on Equity of 30.3%. The company operates without debt, reducing financial risk and ensuring that its short-term assets significantly exceed both short-term (CN¥682 million) and long-term liabilities (CN¥69.1 million). Despite its profitability, the stock has experienced high volatility over the past three months, which is common among stocks in this category. However, significant insider selling in recent months may warrant caution for potential investors.

• Get an in-depth perspective on Fenbi's performance by reading our balance sheet health report here.
• Assess Fenbi's future earnings estimates with our detailed growth reports.

Greentown Service Group (SEHK:2869)

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

Overview: Greentown Service Group Co. Ltd., along with its subsidiaries, offers residential property management services in the People's Republic of China and internationally, with a market cap of HK$12.31 billion.

Operations: The company's revenue is primarily derived from Property Services (CN¥11.87 billion), followed by Community Living Services excluding Technology Services (CN¥3.66 billion), Consulting Services (CN¥2.35 billion), and Technology Services (CN¥0.37 billion).

Market Cap: HK$12.31B

Greentown Service Group, with a market cap of HK$12.31 billion, demonstrates solid financial health as its short-term assets (CN¥12.4 billion) surpass both short-term (CN¥9.1 billion) and long-term liabilities (CN¥1.2 billion). The company has more cash than debt, and its operating cash flow covers debt well, indicating effective management of financial obligations. Earnings growth over the past year was 11.7%, outpacing the real estate industry decline of -11%. Despite a low Return on Equity at 9.8% and an unstable dividend track record, Greentown's earnings are forecasted to grow by 13.81% annually, suggesting potential for future profitability enhancement.

• Dive into the specifics of Greentown Service Group here with our thorough balance sheet health report.
• Learn about Greentown Service Group's future growth trajectory here.

Rongan PropertyLtd (SZSE:000517)

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

Overview: Rongan Property Co., Ltd. develops and sells real estate properties in China, with a market cap of CN¥7.80 billion.

Operations: The company generates its revenue of CN¥25.98 billion from its operations in China.

Market Cap: CN¥7.8B

Rongan Property Co., Ltd., with a market cap of CN¥7.80 billion, maintains strong liquidity as its short-term assets (CN¥27.1 billion) exceed both short-term (CN¥18.7 billion) and long-term liabilities (CN¥1.6 billion). Despite being unprofitable, the company has reduced its debt to equity ratio significantly over five years and maintains a satisfactory net debt to equity ratio of 10.3%. Recent earnings results show revenue growth but declining net income, reflecting challenges in profitability amidst an industry downturn. The dividend yield is high at 13.06%, though not well covered by earnings, indicating potential sustainability concerns.

• Click here and access our complete financial health analysis report to understand the dynamics of Rongan PropertyLtd.
• Assess Rongan PropertyLtd's previous results with our detailed historical performance reports.

Summing It All Up

• Take a closer look at our Penny Stocks list of 5,705 companies by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• Find companies with promising cash flow potential yet trading below their fair value.

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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