As global markets react positively to the recent U.S.-China trade agreement, Asian stocks have shown resilience, with key indices experiencing gains amid a temporary de-escalation in trade tensions. In this environment, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential market opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| PixArt Imaging (TPEX:3227) | NT$220.50 | NT$439.50 | 49.8% |
| Shenzhen KSTAR Science and Technology (SZSE:002518) | CN¥22.87 | CN¥44.96 | 49.1% |
| People & Technology (KOSDAQ:A137400) | ₩36650.00 | ₩73189.59 | 49.9% |
| Boditech Med (KOSDAQ:A206640) | ₩16100.00 | ₩31125.50 | 48.3% |
| Shenzhen Yinghe Technology (SZSE:300457) | CN¥17.72 | CN¥34.57 | 48.7% |
| ONE CAREER (TSE:4377) | ¥2218.00 | ¥4394.74 | 49.5% |
| Dive (TSE:151A) | ¥912.00 | ¥1813.62 | 49.7% |
| Cosmax (KOSE:A192820) | ₩210000.00 | ₩409710.85 | 48.7% |
| BalnibarbiLtd (TSE:3418) | ¥1166.00 | ¥2321.81 | 49.8% |
| True Corporation (SET:TRUE) | THB12.40 | THB24.64 | 49.7% |
Let's explore several standout options from the results in the screener.
Nanjing King-Friend Biochemical PharmaceuticalLtd (SHSE:603707)
Overview: Nanjing King-Friend Biochemical Pharmaceutical Co., Ltd. is a company engaged in the production and sale of biochemical pharmaceutical products, with a market cap of CN¥17.80 billion.
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Estimated Discount To Fair Value: 39.6%
Nanjing King-Friend Biochemical Pharmaceutical Ltd. is trading 39.6% below its estimated fair value of CNY 18.25, with a current price of CNY 11.02, highlighting potential undervaluation based on cash flows despite recent declines in sales and net income for Q1 2025 to CNY 885.22 million and CNY 84.71 million, respectively. Revenue growth is forecast at an annual rate of 19.4%, surpassing the broader Chinese market's expected growth rate of 12.4%.
- The growth report we've compiled suggests that Nanjing King-Friend Biochemical PharmaceuticalLtd's future prospects could be on the up.
- Dive into the specifics of Nanjing King-Friend Biochemical PharmaceuticalLtd here with our thorough financial health report.
Kuraray (TSE:3405)
Overview: Kuraray Co., Ltd. is involved in the global production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems with a market cap of ¥580.75 billion.
Operations: Revenue Segments (in millions of ¥): Resins and Chemicals: 350,000; Fibers and Textiles: 150,000; Activated Carbon: 75,000; High-Performance Membranes and Systems: 125,000. Kuraray generates revenue through its diverse segments including resins and chemicals (¥350 billion), fibers and textiles (¥150 billion), activated carbon (¥75 billion), and high-performance membranes and systems (¥125 billion).
Estimated Discount To Fair Value: 39.5%
Kuraray is trading at ¥1,793, significantly below its estimated fair value of ¥2,961.33, suggesting potential undervaluation based on cash flows. The company has announced a buyback program to repurchase 22 million shares for ¥30 billion to improve capital efficiency. Despite lower profit margins this year compared to last and an unstable dividend track record, earnings are expected to grow substantially at 24.9% annually over the next three years.
- Our earnings growth report unveils the potential for significant increases in Kuraray's future results.
- Unlock comprehensive insights into our analysis of Kuraray stock in this financial health report.
DMG Mori (TSE:6141)
Overview: DMG Mori Co., Ltd. is a global manufacturer and seller of machine tools, with a market cap of ¥418.99 billion.
Operations: The company generates revenue primarily from its Machine Tools segment, which accounts for ¥614.80 billion, and its Industrial Service segment, contributing ¥225.18 billion.
Estimated Discount To Fair Value: 40.7%
DMG Mori is trading at ¥2,955.50, well below its fair value estimate of ¥4,981.88, highlighting potential undervaluation based on cash flows. Despite recent share price volatility and a dividend not fully covered by earnings or free cash flows, the company is expected to experience significant annual earnings growth of 24.2%, outpacing the Japanese market's growth rate. However, profit margins have decreased from last year’s 5.8% to 2.5%.
- Insights from our recent growth report point to a promising forecast for DMG Mori's business outlook.
- Take a closer look at DMG Mori's balance sheet health here in our report.
Make It Happen
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Interested In Other Possibilities?
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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 Nanjing King-Friend Biochemical PharmaceuticalLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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