Stock Analysis

Undiscovered Gems In Asia With Promising Potential April 2025

TWSE:2451
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As global trade tensions intensify, Asian markets are navigating a complex landscape with significant implications for small-cap stocks. Despite the challenging environment, characterized by escalating tariffs and fluctuating consumer sentiment, there remain opportunities to uncover stocks with potential for growth. Identifying such gems often involves looking at companies that demonstrate resilience and adaptability in uncertain economic conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Asia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
NOROO PAINT & COATINGS10.55%4.93%13.28%★★★★★★
Ohashi TechnicaNA4.58%-14.04%★★★★★★
Taisun Enterprise0.14%7.43%19.72%★★★★★★
Shangri-La HotelNA15.26%23.20%★★★★★★
Saison TechnologyNA0.96%-11.65%★★★★★★
S.A.S. Dragon Holdings77.35%3.64%7.13%★★★★★☆
Gallant Precision Machining47.82%-1.17%4.66%★★★★★☆
Uniplus Electronics27.23%44.40%74.50%★★★★★☆
Bank of Iwate119.19%1.75%7.64%★★★★☆☆
Fengyinhe Holdings0.60%38.63%65.41%★★★★☆☆

Click here to see the full list of 2628 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

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

Acter Group (TPEX:5536)

Simply Wall St Value Rating: ★★★★★☆

Overview: Acter Group Corporation Limited offers engineering services across Taiwan, Mainland China, and other Asian countries with a market capitalization of NT$42.68 billion.

Operations: Acter Group generates revenue primarily from engineering services in Taiwan (NT$14.99 billion), Mainland China (NT$12.68 billion), and other Asian countries (NT$3.36 billion). The company's operations result in a market capitalization of NT$42.68 billion, with adjustments and eliminations amounting to -NT$0.77 billion impacting the overall revenue figures.

Acter Group, a nimble player in the construction industry, has demonstrated impressive growth with earnings surging 42% over the past year, outpacing the industry's 9%. The company reported sales of TWD 29.72 billion for 2024, up from TWD 24.59 billion previously. Its price-to-earnings ratio stands at a favorable 16x compared to the Taiwan market's average of nearly 18x. With revenue expected to grow annually by about 12%, Acter seems poised for continued expansion. Notably, it declared cash dividends totaling TWD 1.24 billion for late 2024, reflecting robust financial health and shareholder returns.

TPEX:5536 Earnings and Revenue Growth as at Apr 2025
TPEX:5536 Earnings and Revenue Growth as at Apr 2025

Transcend Information (TWSE:2451)

Simply Wall St Value Rating: ★★★★★★

Overview: Transcend Information, Inc. is involved in the manufacturing, processing, and selling of computer software and hardware, peripheral equipment, and other computer components across Taiwan and globally with a market cap of NT$41.65 billion.

Operations: Revenue from computer peripherals amounts to NT$10.08 billion, highlighting a significant segment of the company's income.

Transcend Information, a tech company with no debt, has demonstrated steady financial health over the past five years. Its earnings have grown 7.8% annually, though last year's growth of 16.6% slightly trailed the tech industry's 17.1%. The firm reported TWD 10 billion in sales for 2024, down from TWD 10.5 billion in the prior year; however, net income rose to TWD 2.31 billion from TWD 1.98 billion previously, reflecting improved profitability with basic earnings per share at TWD 5.39 up from TWD 4.63 last year and a proposed dividend distribution totaling over TWD 2.62 billion highlights shareholder returns focus amidst evolving market conditions.

TWSE:2451 Debt to Equity as at Apr 2025
TWSE:2451 Debt to Equity as at Apr 2025

FuSheng Precision (TWSE:6670)

Simply Wall St Value Rating: ★★★★★★

Overview: FuSheng Precision Co., Ltd. operates in the golf and sports equipment sectors across Japan, the United States, and internationally, with a market cap of NT$43.32 billion.

Operations: FuSheng Precision generates revenue primarily from its Golf Division, contributing NT$24.43 billion, and its Sports Assembly Division, adding NT$2.60 billion.

FuSheng Precision has shown impressive financial performance with earnings growing 57.9% over the past year, outpacing the Leisure industry’s 23.6%. The company reported sales of TWD 28.37 billion, up from TWD 24.38 billion last year, and net income rose to TWD 3.80 billion from TWD 2.40 billion previously. Basic earnings per share jumped to TWD 28.17 from TWD 18.18 a year ago, reflecting strong operational efficiency and profitability improvements likely driven by effective cost management and strategic initiatives in their operations or product offerings that could have bolstered revenue streams significantly over this period.

TWSE:6670 Debt to Equity as at Apr 2025
TWSE:6670 Debt to Equity as at Apr 2025

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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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About TWSE:2451

Transcend Information

Engages in manufacturing, processing, and selling computer software and hardware, peripheral equipment, and other computer components in Taiwan, rest of Asia, the United States, Europe, and internationally.

Flawless balance sheet with acceptable track record.