3 Asian Stocks Estimated To Be Up To 43.3% Undervalued For Savvy Investors

The Asian markets have recently experienced a boost in investor sentiment, largely driven by the temporary de-escalation of trade tensions between the U.S. and China, which has led to a positive outlook across various indices. In this environment, identifying undervalued stocks can be particularly rewarding as these equities may offer potential for growth when market conditions stabilize further.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

Name	Current Price	Fair Value (Est)	Discount (Est)
PixArt Imaging (TPEX:3227)	NT$221.50	NT$440.94	49.8%
Shenzhen KSTAR Science and Technology (SZSE:002518)	CN¥22.66	CN¥45.07	49.7%
S&D (KOSDAQ:A260970)	₩88900.00	₩176610.74	49.7%
Zhuhai CosMX Battery (SHSE:688772)	CN¥13.50	CN¥26.87	49.8%
Brangista (TSE:6176)	¥591.00	¥1174.54	49.7%
Kolmar Korea (KOSE:A161890)	₩85000.00	₩168652.08	49.6%
Dive (TSE:151A)	¥924.00	¥1825.03	49.4%
Wenzhou Yihua Connector (SZSE:002897)	CN¥38.97	CN¥77.92	50%
Kanto Denka Kogyo (TSE:4047)	¥833.00	¥1645.63	49.4%
SpiderPlus (TSE:4192)	¥463.00	¥918.02	49.6%

Click here to see the full list of 302 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Hua Hong Semiconductor (SEHK:1347)

Overview: Hua Hong Semiconductor Limited is an investment holding company involved in the manufacture and sale of semiconductor products across China, North America, Asia, Europe, and Japan with a market cap of HK$61.80 billion.

Operations: The company's revenue is primarily derived from its semiconductor manufacturing and sales segment, which generated $2.08 billion.

Estimated Discount To Fair Value: 21.5%

Hua Hong Semiconductor is trading at HK$31, significantly below its estimated fair value of HK$39.51, suggesting potential undervaluation based on cash flows. Despite a decline in net profit margin from 7.5% to 1.4%, the company’s earnings are forecast to grow substantially at 39.5% annually, outpacing the Hong Kong market's growth rate of 10.5%. Recent earnings showed a sales increase but a sharp drop in net income, highlighting mixed financial performance indicators.

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

Food & Life Companies (TSE:3563)

Overview: Food & Life Companies Ltd. operates a chain of sushi restaurants and has a market cap of ¥683.81 billion.

Operations: Food & Life Companies Ltd. generates revenue primarily from its sushi restaurant chain operations.

Estimated Discount To Fair Value: 43.3%

Food & Life Companies is trading at ¥6,044, well below its estimated fair value of ¥10,668.81. The company forecasts earnings growth of 9.2% annually, surpassing the Japanese market's average. Despite high debt levels, the recent corporate guidance raised revenue and profit expectations significantly for fiscal year-end September 2025. The company also announced an increased year-end dividend to ¥30 per share from last year's ¥27.5, reflecting improved financial outlooks and cash flow potential.

• Our earnings growth report unveils the potential for significant increases in Food & Life Companies' future results.
• Get an in-depth perspective on Food & Life Companies' balance sheet by reading our health report here.

GMO internet group (TSE:9449)

Overview: GMO Internet Group, Inc. offers a range of internet services globally and has a market cap of ¥375.15 billion.

Operations: The company's revenue is derived from Internet Infrastructure (¥132,000 million), Online Advertising & Media (¥72,000 million), Internet Finance (¥43,500 million), and Cryptoassets (¥18,500 million).

Estimated Discount To Fair Value: 38.8%

GMO Internet Group is trading at ¥3,679, significantly below its fair value estimate of ¥6,011.77. The company's earnings are projected to grow 17.75% annually, outpacing the Japanese market average. Recent actions include a dividend increase and share buybacks totaling ¥5.76 billion for 1.81% of shares, underscoring a commitment to shareholder returns amidst steady revenue growth forecasts of 7.9% per year, exceeding the market's pace.

• Upon reviewing our latest growth report, GMO internet group's projected financial performance appears quite optimistic.
• Click here to discover the nuances of GMO internet group with our detailed financial health report.

Key Takeaways

• Discover the full array of 302 Undervalued Asian Stocks Based On Cash Flows right here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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