Stock Analysis

3 Asian Stocks Estimated To Be Up To 42.1% Below Intrinsic Value

SEHK:9926
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Amidst ongoing trade tensions and economic policy shifts, Asian markets have shown resilience with indices like Japan's Nikkei 225 and China's CSI 300 posting gains. In this environment, identifying stocks that are undervalued compared to their intrinsic value can be a strategic approach for investors seeking opportunities amidst market fluctuations.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Xi'an NovaStar Tech (SZSE:301589)CN¥149.07CN¥296.5249.7%
Micro-Star International (TWSE:2377)NT$136.00NT$265.6948.8%
Tonghua Dongbao Pharmaceutical (SHSE:600867)CN¥7.27CN¥14.1148.5%
LITALICO (TSE:7366)¥1166.00¥2305.3549.4%
World Fitness Services (TWSE:2762)NT$79.80NT$156.4249%
CS BEARING (KOSDAQ:A297090)₩5350.00₩10442.6648.8%
Zhejiang Century Huatong GroupLtd (SZSE:002602)CN¥6.87CN¥13.3348.5%
Swire Properties (SEHK:1972)HK$16.08HK$31.9649.7%
Innovent Biologics (SEHK:1801)HK$47.25HK$93.8549.7%
SAMG Entertainment (KOSDAQ:A419530)₩36600.00₩72265.4749.4%

Click here to see the full list of 274 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Akeso (SEHK:9926)

Overview: Akeso, Inc. is a biopharmaceutical company that focuses on the research, development, manufacturing, and commercialization of antibody drugs with a market cap of HK$74.45 billion.

Operations: The company's revenue is primarily generated from its research, development, production, and sale of biopharmaceutical products, amounting to CN¥2.12 billion.

Estimated Discount To Fair Value: 32.3%

Akeso is trading at HK$82.95, significantly below its estimated fair value of HK$122.47, suggesting undervaluation based on discounted cash flow analysis. Despite recent earnings showing a net loss of CNY 514.52 million for 2024, the company is expected to become profitable within three years with revenue growth projected at 28.9% annually, far outpacing the Hong Kong market average. However, Akeso's share price has been highly volatile recently which could pose risks for investors seeking stability.

SEHK:9926 Discounted Cash Flow as at Apr 2025
SEHK:9926 Discounted Cash Flow as at Apr 2025

Yangzijiang Shipbuilding (Holdings) (SGX:BS6)

Overview: Yangzijiang Shipbuilding (Holdings) Ltd. is an investment holding company involved in shipbuilding activities across Greater China and various international markets, with a market cap of SGD8.11 billion.

Operations: The company generates revenue primarily from its shipbuilding operations, which account for CN¥25.22 billion, followed by its shipping segment contributing CN¥1.24 billion.

Estimated Discount To Fair Value: 29.0%

Yangzijiang Shipbuilding (Holdings) trades at S$2.06, below its estimated fair value of S$2.90, highlighting potential undervaluation based on cash flows. The company reported robust earnings growth of 61.7% last year and forecasts suggest continued revenue growth at 14.9% annually, outpacing the Singapore market average. Recent actions include a share buyback program and a proposed final dividend of SGD 0.12 per share, reflecting strong cash flow management and shareholder returns focus.

SGX:BS6 Discounted Cash Flow as at Apr 2025
SGX:BS6 Discounted Cash Flow as at Apr 2025

NIHON CHOUZAILtd (TSE:3341)

Overview: NIHON CHOUZAI Co., Ltd. operates a chain of health insurance dispensing pharmacies in Japan, with a market cap of ¥75.11 billion.

Operations: The company's revenue is primarily derived from its Dispensing Pharmacy Business at ¥317.50 billion, followed by the Pharmaceutical Manufacturing Sales Business at ¥40.19 billion, and the Medical Worker Dispatch/Introduction Business at ¥11.29 billion.

Estimated Discount To Fair Value: 42.1%

NIHON CHOUZAI Ltd. trades at ¥2,514, significantly below its estimated fair value of ¥4,342.14, suggesting undervaluation based on cash flows despite recent challenges. The company faces a volatile share price and reported an impairment loss of ¥2.08 billion in its Dispensing Pharmacy Business due to a changing business environment. However, earnings are forecast to grow 35.73% annually with expectations of becoming profitable within three years, surpassing average market growth rates in Japan.

TSE:3341 Discounted Cash Flow as at Apr 2025
TSE:3341 Discounted Cash Flow as at Apr 2025

Summing It All Up

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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.

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