Asian Market Insights: Guangshen Railway And 2 Other Penny Stocks To Watch

Simply Wall St

As the Asian markets navigate a complex landscape of global trade tensions and economic shifts, investors are increasingly turning their attention to smaller companies that may offer unique opportunities. Penny stocks, though an older term, still represent a segment of the market where emerging or less-established firms can provide potential value. By focusing on those with strong financials and growth prospects, these stocks can present intriguing possibilities for investors looking to explore under-the-radar opportunities in Asia.

Top 10 Penny Stocks In Asia

NameShare PriceMarket CapRewards & Risks
YKGI (Catalist:YK9)SGD0.10SGD42.5M✅ 2 ⚠️ 3 View Analysis >
Lever Style (SEHK:1346)HK$1.15HK$725.59M✅ 4 ⚠️ 2 View Analysis >
TK Group (Holdings) (SEHK:2283)HK$2.10HK$1.75B✅ 4 ⚠️ 1 View Analysis >
CNMC Goldmine Holdings (Catalist:5TP)SGD0.425SGD172.25M✅ 3 ⚠️ 3 View Analysis >
Goodbaby International Holdings (SEHK:1086)HK$1.18HK$1.97B✅ 4 ⚠️ 2 View Analysis >
Halcyon Technology (SET:HTECH)THB2.64THB792M✅ 2 ⚠️ 3 View Analysis >
Yangzijiang Shipbuilding (Holdings) (SGX:BS6)SGD2.28SGD8.97B✅ 5 ⚠️ 0 View Analysis >
Beng Kuang Marine (SGX:BEZ)SGD0.179SGD35.66M✅ 4 ⚠️ 3 View Analysis >
BRC Asia (SGX:BEC)SGD3.12SGD855.97M✅ 3 ⚠️ 1 View Analysis >
Bosideng International Holdings (SEHK:3998)HK$4.52HK$51.78B✅ 4 ⚠️ 1 View Analysis >

Click here to see the full list of 1,147 stocks from our Asian Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Guangshen Railway (SEHK:525)

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

Overview: Guangshen Railway Company Limited operates in the railway passenger and freight transportation sectors in the People’s Republic of China, with a market cap of HK$20.93 billion.

Operations: The company generates revenue of CN¥27.39 billion from its operations in China.

Market Cap: HK$20.93B

Guangshen Railway's recent performance highlights a stable revenue stream, with Q1 2025 sales reaching CN¥6.90 billion, up from the previous year. Despite this growth, net income declined to CN¥468.18 million from CN¥546.94 million, reflecting a dip in profit margins from 4.5% to 3.6%. The company maintains strong financial health with more cash than total debt and robust interest coverage at 31.7x EBIT. However, earnings growth has been negative over the past year at -18.2%, underperforming the industry average of 2.7%. The stock trades significantly below its estimated fair value but has an unstable dividend history.

SEHK:525 Debt to Equity History and Analysis as at Jun 2025

Ming Yuan Cloud Group Holdings (SEHK:909)

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

Overview: Ming Yuan Cloud Group Holdings Limited is an investment holding company that offers cloud services and on-premises software in China, with a market cap of approximately HK$5.16 billion.

Operations: The company's revenue is primarily derived from Cloud Services, which generated CN¥1.20 billion, and On-premise Software and Services, contributing CN¥239.73 million.

Market Cap: HK$5.16B

Ming Yuan Cloud Group Holdings, despite being unprofitable with a net loss of CN¥189.55 million for 2024, shows financial resilience through its substantial short-term assets of CN¥4.1 billion, which cover both short and long-term liabilities comfortably. The company is debt-free and has maintained a sufficient cash runway for over three years based on current free cash flow. While the stock trades below its estimated fair value, it has an unstable dividend track record but recently announced a special dividend of HK$0.1 per share to shareholders, showcasing shareholder returns amidst ongoing challenges in profitability growth.

SEHK:909 Debt to Equity History and Analysis as at Jun 2025

Jiumaojiu International Holdings (SEHK:9922)

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

Overview: Jiumaojiu International Holdings Limited operates and manages Chinese cuisine restaurant brands across several countries including China, Singapore, Canada, Malaysia, Thailand, the United States, and Indonesia with a market cap of HK$3.54 billion.

Operations: The company's revenue is primarily derived from its Tai Er segment, contributing CN¥4.41 billion, followed by Jiu Mao Jiu with CN¥546.18 million and Song Hot Pot with CN¥894.97 million.

Market Cap: HK$3.54B

Jiumaojiu International Holdings, with a market cap of HK$3.54 billion, has shown financial stability by maintaining more cash than its total debt and having short-term assets of CN¥2.3 billion that exceed both short and long-term liabilities. Despite a significant one-off loss impacting earnings, the company reported revenues primarily from its Tai Er segment at CN¥4.41 billion for 2024. Recent corporate actions include declaring a special dividend of HKD 0.02 per share despite reduced net profit margins to 0.9% from the previous year’s 7.6%, reflecting ongoing profitability challenges amidst strategic shareholder returns initiatives.

SEHK:9922 Revenue & Expenses Breakdown as at Jun 2025

Make It Happen

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 Jiumaojiu International Holdings 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