Stock Analysis

Asian Companies Trading Below Estimated Value In April 2025

TWSE:6781
Source: Shutterstock

In April 2025, global markets are grappling with heightened trade tensions due to unexpected tariff increases by the U.S., which have sparked concerns over economic growth and inflation worldwide. Amidst this uncertainty, investors are increasingly looking towards undervalued stocks in Asia as potential opportunities, focusing on companies that demonstrate strong fundamentals and resilience in challenging market conditions.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Ficont Industry (Beijing) (SHSE:605305)CN¥27.32CN¥54.0749.5%
Future (TSE:4722)¥1688.00¥3372.2649.9%
Sichuan Injet Electric (SZSE:300820)CN¥49.27CN¥96.5449%
Cosel (TSE:6905)¥999.00¥1934.5048.4%
BuySell TechnologiesLtd (TSE:7685)¥2547.00¥5068.2349.7%
EVE Energy (SZSE:300014)CN¥45.77CN¥89.8549.1%
Eternal Hospitality GroupLtd (TSE:3193)¥2608.00¥5053.7748.4%
Kokusai Electric (TSE:6525)¥2105.50¥4168.6249.5%
Sunstone Development (SHSE:603612)CN¥17.17CN¥33.3248.5%
MicroPort CardioFlow Medtech (SEHK:2160)HK$0.91HK$1.7648.4%

Click here to see the full list of 269 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

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

HD-Hyundai Marine Engine (KOSE:A071970)

Overview: HD-Hyundai Marine Engine Co., Ltd. manufactures and sells marine engines, industrial facilities, and plants both in South Korea and internationally, with a market cap of approximately ₩946.41 billion.

Operations: The company's revenue segment primarily comprises the Engine and Equipment division, which generated approximately ₩315.79 million.

Estimated Discount To Fair Value: 40.8%

HD-Hyundai Marine Engine's recent financial performance shows significant growth, with net income rising to ₩75.78 billion from ₩31.64 billion a year ago, and revenue more than doubling. Despite high share price volatility, the stock is trading at 40.8% below its estimated fair value of ₩47,121.09 per share, indicating potential undervaluation based on cash flows. Revenue is forecasted to grow rapidly at 30% annually, outpacing the market rate significantly.

KOSE:A071970 Discounted Cash Flow as at Apr 2025
KOSE:A071970 Discounted Cash Flow as at Apr 2025

DPC Dash (SEHK:1405)

Overview: DPC Dash Ltd, with a market cap of HK$13.90 billion, operates a chain of fast-food restaurants in the People's Republic of China through its subsidiaries.

Operations: The company's revenue primarily comes from its fast-food restaurant operations in the People’s Republic of China, amounting to CN¥4.31 billion.

Estimated Discount To Fair Value: 11.3%

DPC Dash's recent annual results highlight a turnaround, with net income reaching CNY 55.2 million from a prior loss, driven by sales growth to CNY 4.31 billion. The stock trades at HK$106.3, slightly below its fair value of HK$119.91, suggesting modest undervaluation based on cash flows. Earnings are expected to grow significantly at over 51% annually, surpassing the Hong Kong market’s growth rate and indicating robust future performance potential despite a lower return on equity forecast.

SEHK:1405 Discounted Cash Flow as at Apr 2025
SEHK:1405 Discounted Cash Flow as at Apr 2025

Advanced Energy Solution Holding (TWSE:6781)

Overview: Advanced Energy Solution Holding Co., Ltd. operates in the energy sector and has a market capitalization of approximately NT$74.74 billion.

Operations: Advanced Energy Solution Holding Co., Ltd. generates its revenue from various segments in the energy sector.

Estimated Discount To Fair Value: 23.8%

Advanced Energy Solution Holding Co., Ltd. reported a net income of TWD 2.17 billion for 2024, up from TWD 1.97 billion in the previous year, reflecting strong cash flow potential. The stock is trading at NT$875, below its estimated fair value of NT$1,148.74 and analysts expect earnings to grow significantly by 32.6% annually over the next three years, outpacing Taiwan's market growth rate despite recent share price volatility and a high dividend payout of TWD 12.5 per share for 2024.

TWSE:6781 Discounted Cash Flow as at Apr 2025
TWSE:6781 Discounted Cash Flow as at Apr 2025

Key Takeaways

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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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