3 Asian Stocks Estimated To Be Trading Up To 30.1% Below Their Intrinsic Value

As global markets grapple with AI-related concerns and fluctuating valuations, Asian stocks present intriguing opportunities for investors seeking value. In such a climate, identifying stocks trading below their intrinsic value can be a prudent strategy, offering potential resilience amid broader market volatility.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

Click here to see the full list of 277 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

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

Duk San NeoluxLtd (KOSDAQ:A213420)

Overview: Duk San Neolux Co., Ltd specializes in developing and manufacturing OLED materials for the display industry in South Korea, with a market cap of ₩1.01 billion.

Operations: Duk San Neolux Co., Ltd generates revenue primarily from the development and manufacturing of OLED materials for the South Korean display industry.

Estimated Discount To Fair Value: 12.6%

Duk San Neolux Ltd. is trading at ₩41,300, slightly below its estimated fair value of ₩47,248.79. The company's earnings are forecast to grow significantly at 30.61% annually over the next three years, outpacing the Korean market's average growth rate of 28.5%. Revenue is expected to increase by 21.6% per year, surpassing both the market and a high growth benchmark of 20%. However, its return on equity remains relatively low at a forecasted 16.4%.

• Our growth report here indicates Duk San NeoluxLtd may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of Duk San NeoluxLtd stock in this financial health report.

Zhuhai CosMX Battery (SHSE:688772)

Overview: Zhuhai CosMX Battery Co., Ltd. manufactures and supplies polymer lithium-ion batteries globally, with a market cap of approximately CN¥25.78 billion.

Operations: Zhuhai CosMX Battery Co., Ltd. generates its revenue primarily from the production and distribution of polymer lithium-ion batteries on a global scale.

Estimated Discount To Fair Value: 13.1%

Zhuhai CosMX Battery is trading at CN¥22.9, below its estimated fair value of CN¥26.36, suggesting it may be undervalued based on cash flows. The company reported strong earnings growth of 70.3% over the past year and is expected to continue with a significant annual profit growth rate of 50.4%, outpacing the Chinese market average. However, its return on equity is forecasted to remain low at 18%, and interest payments are not well covered by earnings.

• The analysis detailed in our Zhuhai CosMX Battery growth report hints at robust future financial performance.
• Click here to discover the nuances of Zhuhai CosMX Battery with our detailed financial health report.

Socionext (TSE:6526)

Overview: Socionext Inc. is a global company that designs, develops, manufactures, and sells system-on-chip (SoC) solutions and services, with a market cap of ¥391.92 billion.

Operations: The company's revenue primarily comes from its SoC Developed with The Solution segment, amounting to ¥176.56 billion.

Estimated Discount To Fair Value: 30.1%

Socionext's stock, priced at ¥2236.5, is trading significantly below its estimated fair value of ¥3198.51, highlighting potential undervaluation based on cash flows. Despite a revision in earnings guidance due to lower gross margins and increased development costs, the company's revenue is expected to grow faster than the market average at 14.6% annually. However, profit margins have decreased from last year and dividend coverage by free cash flow remains inadequate, raising sustainability concerns.

• In light of our recent growth report, it seems possible that Socionext's financial performance will exceed current levels.
• Click here and access our complete balance sheet health report to understand the dynamics of Socionext.

Key Takeaways

• Access the full spectrum of 277 Undervalued Asian Stocks Based On Cash Flows by clicking on this link.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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.

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