Stock Analysis

July 2025's Asian Stocks Estimated Below Intrinsic Value

KOSE:A161890
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As global markets continue to navigate a complex landscape, Asian indices have shown resilience with China's stock markets posting gains despite mixed economic signals. In this context, identifying stocks that are trading below their intrinsic value can present potential opportunities for investors looking to capitalize on market inefficiencies.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Zhejiang Leapmotor Technology (SEHK:9863)HK$57.90HK$115.3249.8%
Taiyo Yuden (TSE:6976)¥2575.00¥5105.3949.6%
Ningbo Sanxing Medical ElectricLtd (SHSE:601567)CN¥23.15CN¥46.0449.7%
JRCLtd (TSE:6224)¥1161.00¥2302.9949.6%
Evergreen Aviation Technologies (TWSE:2645)NT$99.00NT$195.5349.4%
Darbond Technology (SHSE:688035)CN¥39.65CN¥78.3449.4%
cottaLTD (TSE:3359)¥427.00¥853.1750%
Astroscale Holdings (TSE:186A)¥673.00¥1345.9550%
APAC Realty (SGX:CLN)SGD0.48SGD0.9549.2%
Accton Technology (TWSE:2345)NT$813.00NT$1600.1949.2%

Click here to see the full list of 270 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

SILICON2 (KOSDAQ:A257720)

Overview: SILICON2 Co., Ltd. is involved in the global distribution of cosmetics products and has a market cap of approximately ₩3.58 trillion.

Operations: The company generates revenue primarily through its wholesale miscellaneous segment, which accounts for ₩787.27 million.

Estimated Discount To Fair Value: 47.4%

SILICON2 Co., Ltd. exhibits strong cash flow potential, trading at ₩54,600, which is 47.4% below its estimated fair value of ₩103,741.08. Despite recent volatility and slower-than-market earnings growth forecasts of 20.8% annually, the company's net income rose significantly to KRW 38.79 billion in Q1 2025 from KRW 25.54 billion a year ago, highlighting robust profit growth and high-quality earnings with a projected return on equity of 39.6%.

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

Kolmar Korea (KOSE:A161890)

Overview: Kolmar Korea Co., Ltd. is engaged in the research, development, production, and sale of beauty and health products both domestically and internationally, with a market cap of ₩2.58 trillion.

Operations: Kolmar Korea Co., Ltd. generates revenue from various segments, including Cosmetics (₩1.33 trillion), Medicines (₩838.45 billion), Packaging (₩272.41 billion), and Food (₩87.76 billion).

Estimated Discount To Fair Value: 36.6%

Kolmar Korea is currently trading at ₩109,200, significantly undervalued compared to its fair value estimate of ₩172,362.29. The company exhibits strong potential with earnings projected to grow 23.69% annually over the next three years, outpacing the Korean market's growth rate of 20.9%. However, despite high earnings growth and a favorable valuation gap of 36.6%, Kolmar Korea faces challenges such as low forecasted return on equity and substantial debt levels impacting financial stability.

KOSE:A161890 Discounted Cash Flow as at Jul 2025
KOSE:A161890 Discounted Cash Flow as at Jul 2025

freee K.K (TSE:4478)

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market cap of ¥220.33 billion.

Operations: The company's revenue is primarily derived from its Platform Business segment, totaling ¥30.86 billion.

Estimated Discount To Fair Value: 45.9%

freee K.K. is trading at ¥3,725, significantly below its estimated fair value of ¥6,883.61, suggesting it is undervalued based on cash flows. The company's revenue is forecast to grow 17.6% annually, outpacing the Japanese market's 4.3% growth rate and contributing to earnings growth projected at 39.97% per year. Recent developments include plans for issuing new restricted shares and guidance for net sales of ¥33 billion for FY2025 ending June 30th.

TSE:4478 Discounted Cash Flow as at Jul 2025
TSE:4478 Discounted Cash Flow as at Jul 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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