In recent weeks, Asian markets have been navigating a complex landscape marked by trade tensions and economic policy shifts, impacting investor sentiment and small-cap stocks. Despite these challenges, opportunities may arise for investors looking at small-cap companies that demonstrate strong fundamentals and potential for growth. Identifying such stocks often involves examining factors like insider buying activity, which can signal confidence from those closest to the company's operations.
Top 10 Undervalued Small Caps With Insider Buying In Asia
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Security Bank | 4.3x | 1.0x | 38.25% | ★★★★★★ |
| Infomedia | 29.9x | 3.3x | 30.65% | ★★★★★☆ |
| East West Banking | 3.1x | 0.7x | 33.41% | ★★★★★☆ |
| ReadyTech Holdings | NA | 2.4x | 49.86% | ★★★★★☆ |
| Puregold Price Club | 8.7x | 0.4x | 41.52% | ★★★★☆☆ |
| Atturra | 28.7x | 1.2x | 32.28% | ★★★★☆☆ |
| Sing Investments & Finance | 7.2x | 3.7x | 39.63% | ★★★★☆☆ |
| Dicker Data | 18.5x | 0.6x | -13.63% | ★★★☆☆☆ |
| Pacific Textiles Holdings | 11.9x | 0.4x | 44.65% | ★★★☆☆☆ |
| Integral Diagnostics | 157.1x | 1.8x | 34.20% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
Freightways Group (NZSE:FRW)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Freightways Group is a logistics and information management company that operates primarily in express package and business mail services, with a market capitalization of NZ$1.52 billion.
Operations: Freightways Group generates revenue primarily from its Express Package & Business Mail segment, contributing NZ$1.03 billion, and Information Management segment, adding NZ$226.23 million. The company's gross profit margin has shown a declining trend from 33.66% in December 2016 to 29.52% in December 2024, indicating changes in cost structure or pricing strategies over time.
PE: 26.1x
Freightways Group, a small company in Asia, has caught attention due to its insider confidence. Recent share purchases by insiders in the past six months indicate belief in its potential. Despite having A$1.2 billion of debt primarily from external borrowing, which is considered higher risk, the company's earnings are expected to grow 11% annually. This growth potential paired with insider activity suggests optimism about future performance amidst financial challenges.
- Navigate through the intricacies of Freightways Group with our comprehensive valuation report here.
Understand Freightways Group's track record by examining our Past report.
Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Precinct Properties NZ is a real estate investment company focused on premium office and mixed-use properties, with operations spanning flexible spaces, hotel and hospitality services, investment management, and investment properties; it has a market capitalization of approximately NZ$1.98 billion.
Operations: Precinct Properties generates revenue primarily from its investment properties, which account for NZ$215.60 million, followed by flexible space and hotel and hospitality segments. The company has seen fluctuations in net income margins, with a notable decline to -0.10% as of December 2024. Operating expenses have been consistently around NZ$20-22 million, while non-operating expenses have varied significantly over time, impacting overall profitability.
PE: -66.4x
Precinct Properties, a small player in Asia's property sector, has caught attention with insider confidence shown through recent share purchases. Their commitment to developing student accommodation for the University of Auckland and forming a strategic partnership with a Singapore-based investor highlights growth ambitions. However, reliance on external borrowing poses financial risks. Despite this, earnings are projected to grow 65% annually, suggesting potential for future value creation amidst these challenges.
RFM (PSE:RFM)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: RFM is a company engaged in the consumer and institutional business sectors, with operations including various revenue segments, and it has a market capitalization of ₱18.68 billion.
Operations: The Consumer Business segment is the primary revenue driver, generating ₱16.50 billion, while the Institutional Business contributes ₱5.32 billion. Over recent periods, gross profit margin has shown a varied trend, reaching 35.21% in December 2021 and fluctuating to 33.40% by March 2025. Operating expenses have been significant, with Sales & Marketing consistently being a major component within these costs.
PE: 9.4x
RFM's recent performance highlights its potential as an undervalued player in Asia's market. In the first quarter of 2025, sales rose to PHP 4.5 billion from PHP 4.4 billion last year, with net income jumping to PHP 310 million from PHP 200 million. Despite relying solely on external borrowing for funding, the company demonstrates resilience through consistent earnings growth and a commitment to shareholder returns with two cash dividends totaling PHP 400 million in early 2025.
Next Steps
- Click this link to deep-dive into the 63 companies within our Undervalued Asian Small Caps With Insider Buying screener.
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Curious About Other Options?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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.
Valuation is complex, but we're here to simplify it.
Discover if RFM might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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