As global markets navigate a complex landscape of economic shifts, Asia's stock markets are capturing attention with their nuanced responses to recent developments. Amidst this backdrop, identifying undervalued stocks becomes crucial for investors seeking opportunities in regions like China and Japan, where market conditions present both challenges and potential rewards.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Zhejiang Jiemei Electronic And Technology (SZSE:002859) | CN¥30.49 | CN¥60.44 | 49.6% |
| Visional (TSE:4194) | ¥9982.00 | ¥19591.90 | 49.1% |
| Tongyu Communication (SZSE:002792) | CN¥17.53 | CN¥34.34 | 48.9% |
| PharmaResearch (KOSDAQ:A214450) | ₩447000.00 | ₩883913.20 | 49.4% |
| Ningxia Building Materials GroupLtd (SHSE:600449) | CN¥13.16 | CN¥26.21 | 49.8% |
| New Zealand King Salmon Investments (NZSE:NZK) | NZ$0.196 | NZ$0.39 | 49.2% |
| King Yuan Electronics (TWSE:2449) | NT$196.50 | NT$384.86 | 48.9% |
| EROAD (NZSE:ERD) | NZ$1.585 | NZ$3.15 | 49.7% |
| Beijing Beimo High-tech Frictional MaterialLtd (SZSE:002985) | CN¥28.18 | CN¥56.35 | 50% |
| Alibaba Health Information Technology (SEHK:241) | HK$5.73 | HK$11.26 | 49.1% |
We're going to check out a few of the best picks from our screener tool.
Naruida Technology (SHSE:688522)
Overview: Naruida Technology Co., Ltd. specializes in the manufacturing and sale of polarized multifunctional active phased array radars in China, with a market cap of CN¥11.51 billion.
Operations: The company's revenue is primarily generated from its Scientific & Technical Instruments segment, totaling CN¥463.09 million.
Estimated Discount To Fair Value: 27.7%
Naruida Technology's stock appears undervalued, trading at CN¥38.02, below its estimated fair value of CN¥52.57. The company has shown robust financial performance with revenue for the nine months ending September 2025 reaching CN¥254.02 million, up from CN¥136.2 million a year ago, and net income rising to CN¥73.16 million from CN¥26.01 million. Earnings are forecasted to grow significantly at 58.33% annually over the next three years, outpacing market averages in China.
- The growth report we've compiled suggests that Naruida Technology's future prospects could be on the up.
- Click here to discover the nuances of Naruida Technology with our detailed financial health report.
JAC Recruitment (TSE:2124)
Overview: JAC Recruitment Co., Ltd. offers recruitment consultancy services in Japan and has a market cap of ¥170.64 billion.
Operations: The company's revenue segments include the Overseas Business at ¥3.85 billion, Domestic Recruitment Business at ¥40.84 billion, and Domestic Job Offer Advertising Business at ¥440 million.
Estimated Discount To Fair Value: 19%
JAC Recruitment's stock is undervalued, trading at ¥1,075 against a fair value of ¥1,327.64. Earnings are projected to grow 19.9% annually, surpassing the Japanese market average of 7.9%. The company announced a share buyback program worth ¥1 billion and raised its earnings forecast for 2025 due to effective cost management and favorable tax credits. A dividend increase to ¥36 per share reflects strong shareholder return policies amidst solid financial performance.
- Our comprehensive growth report raises the possibility that JAC Recruitment is poised for substantial financial growth.
- Click to explore a detailed breakdown of our findings in JAC Recruitment's balance sheet health report.
PAL GROUP Holdings (TSE:2726)
Overview: PAL GROUP Holdings CO., LTD. operates in Japan, focusing on the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories, with a market cap of ¥364.83 billion.
Operations: The company's revenue is primarily derived from its Clothing Business, which accounts for ¥138.52 billion, followed by the Miscellaneous Goods Business at ¥84.72 billion.
Estimated Discount To Fair Value: 11.8%
PAL GROUP Holdings is trading at ¥2,101, below its fair value estimate of ¥2,382.7. Earnings are forecast to grow 15.84% annually, outpacing the Japanese market's 7.9% growth rate. Recent leadership changes aim to enhance corporate value and sustainability following the resignation of Chairman Isamu Matsuo due to health issues. Despite a volatile share price recently, the company's robust earnings growth and strategic management adjustments present potential for investors focused on cash flow valuation in Asia.
- The analysis detailed in our PAL GROUP Holdings growth report hints at robust future financial performance.
- Navigate through the intricacies of PAL GROUP Holdings with our comprehensive financial health report here.
Turning Ideas Into Actions
- Delve into our full catalog of 279 Undervalued Asian Stocks Based On Cash Flows here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Ready For A Different Approach?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if JAC Recruitment 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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