Stock Analysis

Asian Stocks Estimated To Be Trading Below Fair Value In March 2025

KOSDAQ:A257720
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As global markets navigate a landscape marked by economic uncertainties and changing policy dynamics, Asian stock indices have shown varied performances, with some regions experiencing gains while others face challenges. Amid this complex environment, identifying stocks trading below their fair value can offer opportunities for investors seeking to capitalize on potential market inefficiencies.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Chison Medical Technologies (SHSE:688358)CN¥31.37CN¥61.6349.1%
Guangdong Mingyang ElectricLtd (SZSE:301291)CN¥48.19CN¥94.5149%
Cosmax (KOSE:A192820)₩182500.00₩361447.7949.5%
Takara Bio (TSE:4974)¥846.00¥1686.7949.8%
APAC Realty (SGX:CLN)SGD0.43SGD0.8549.5%
LITALICO (TSE:7366)¥1089.00¥2126.5848.8%
Food & Life Companies (TSE:3563)¥4493.00¥8723.3048.5%
Zhejiang Juhua (SHSE:600160)CN¥24.30CN¥47.6749%
Sunny Optical Technology (Group) (SEHK:2382)HK$85.55HK$167.8249%
CHEMTRONICS.Co.Ltd (KOSDAQ:A089010)₩28350.00₩55031.7248.5%

Click here to see the full list of 279 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

SILICON2 (KOSDAQ:A257720)

Overview: SILICON2 Co., Ltd. is involved in the global distribution of cosmetics products and has a market cap of approximately ₩1.73 billion.

Operations: The company's revenue primarily comes from its wholesale segment, generating approximately ₩623.64 million.

Estimated Discount To Fair Value: 29.1%

SILICON2 is trading at ₩28,350, significantly below its estimated fair value of ₩39,983.14, indicating it is undervalued based on cash flows. Analysts forecast robust earnings growth of 38.2% annually over the next three years, outpacing the KR market. Despite recent share price volatility and high non-cash earnings levels, revenue growth remains strong at 35.1% per year. The company recently completed a private placement to raise approximately ₩144 billion to enhance financial flexibility.

KOSDAQ:A257720 Discounted Cash Flow as at Mar 2025
KOSDAQ:A257720 Discounted Cash Flow as at Mar 2025

Zijin Mining Group (SEHK:2899)

Overview: Zijin Mining Group Company Limited, along with its subsidiaries, is involved in the exploration, mining, processing, refining, and sale of gold and non-ferrous metals both in Mainland China and internationally, with a market cap of approximately HK$506.31 billion.

Operations: Zijin Mining Group's revenue is primarily derived from its Smelting Products segment, which accounts for CN¥201.37 billion, followed by its Mineral Products segment at CN¥95.36 billion, and Trading activities contributing CN¥134.06 billion.

Estimated Discount To Fair Value: 36%

Zijin Mining Group is trading at HK$18.14, significantly below its fair value estimate of HK$28.34, suggesting it is undervalued based on cash flows. The company reported strong financial results for 2024, with net income rising to CNY 32.05 billion from CNY 21.12 billion the previous year, reflecting a substantial earnings increase of approximately 51%. Despite a high debt level and moderate revenue growth forecasts of 8% annually, its earnings are expected to grow faster than the Hong Kong market average at 13.2% per year.

SEHK:2899 Discounted Cash Flow as at Mar 2025
SEHK:2899 Discounted Cash Flow as at Mar 2025

Chongqing Baiya Sanitary Products (SZSE:003006)

Overview: Chongqing Baiya Sanitary Products Co., Ltd. operates in the sanitary products industry and has a market capitalization of approximately CN¥10.30 billion.

Operations: The company generates revenue from its Personal Products segment, amounting to CN¥3.25 billion.

Estimated Discount To Fair Value: 23%

Chongqing Baiya Sanitary Products is trading at CN¥23.98, below its estimated fair value of CN¥31.13, positioning it as undervalued based on cash flows. The company's 2024 earnings showed an increase to CN¥285.17 million from CN¥238.25 million in 2023, with revenue expected to grow over 21% annually, outpacing the Chinese market average. However, its dividend yield of 2.29% is not well covered by free cash flows despite strong profit growth forecasts exceeding market expectations at approximately 28% per year.

SZSE:003006 Discounted Cash Flow as at Mar 2025
SZSE:003006 Discounted Cash Flow as at Mar 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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