Undiscovered Gems With Strong Fundamentals On None Exchange January 2025

As we step into 2025, global markets have shown mixed signals with the S&P 500 marking a strong two-year performance despite recent profit-taking and economic indicators like the Chicago PMI highlighting ongoing challenges in manufacturing. Amid these broader market dynamics, small-cap stocks present intriguing opportunities as they often remain underappreciated despite possessing strong fundamentals that can thrive even in fluctuating economic conditions.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Resource Alam Indonesia	2.66%	30.36%	43.87%	★★★★★★
Mandiri Herindo Adiperkasa	NA	20.72%	11.08%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Prima Andalan Mandiri	0.94%	20.24%	15.28%	★★★★★★
Bank Ganesha	NA	25.03%	70.72%	★★★★★★
ASRock Rack Incorporation	NA	45.76%	269.05%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Bakrie & Brothers	22.66%	7.78%	13.50%	★★★★★☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Bhakti Multi Artha	45.21%	32.37%	-16.43%	★★★★☆☆

Click here to see the full list of 4666 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Sungwoo Hitech (KOSDAQ:A015750)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sungwoo Hitech Co., Ltd. is a company that specializes in the manufacturing and sale of automobile components both in South Korea and internationally, with a market capitalization of ₩414.36 billion.

Operations: Sungwoo Hitech generates its revenue primarily from the sale of car parts, contributing ₩3.58 trillion, followed by steel parts at ₩544.46 billion.

Sungwoo Hitech, a smaller player in the auto components industry, has been making waves with its recent performance. The company's earnings grew by 36% over the past year, outpacing the industry's 10%. Trading at 86.7% below its estimated fair value suggests potential undervaluation. Despite a high net debt to equity ratio of 71.5%, interest payments are well-covered with an EBIT coverage of 3.8x. Recent financials show third-quarter sales at KRW 68 billion compared to KRW 58 billion last year, though net income dipped significantly from KRW 50 billion to KRW 9 billion, reflecting some challenges amidst growth opportunities.

• Click here to discover the nuances of Sungwoo Hitech with our detailed analytical health report.

• Assess Sungwoo Hitech's past performance with our detailed historical performance reports.

AIC (TPEX:3693)

Simply Wall St Value Rating: ★★★★★★

Overview: AIC Inc. is a company that offers OEM/ODM, commercial off-the-shelf, and server and storage solutions across the United States, Asia, and Europe with a market capitalization of NT$14.44 billion.

Operations: AIC generates revenue primarily from its Computers and Related Spare Parts Department, contributing NT$8.79 billion. The company's financial performance can be analyzed through its gross profit margin, which reflects the efficiency of production and sales processes.

AIC Inc. showcases a promising profile with a price-to-earnings ratio of 14.2x, notably below the TW market average of 20.9x, indicating potential value. Over the past five years, AIC has reduced its debt-to-equity ratio from 24.2% to 23.8%, reflecting prudent financial management, while maintaining high-quality earnings and covering interest payments by EBIT at an impressive 183x coverage. Recent results show sales for Q3 at TWD 2,669 million and net income at TWD 413 million; however, nine-month figures highlight growth with net income rising to TWD 896 million from TWD 804 million year-over-year.

• Click here and access our complete health analysis report to understand the dynamics of AIC.

• Understand AIC's track record by examining our Past report.

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, the rest of Asia, the United States, Europe, and internationally with a market cap of NT$37.61 billion.

Operations: Transcend Information generates revenue primarily from the sale of computer peripherals, amounting to NT$10.27 billion. The company's financial performance is influenced by its cost structure and market dynamics, with a focus on optimizing profitability through efficient operations.

Transcend Information, a tech company with no debt, boasts a price-to-earnings ratio of 15.7x, undercutting the TW market's 20.9x. Despite earnings growth of 59% over the past year outpacing the tech industry average of 13%, recent figures show some challenges. Third-quarter sales were TWD 2,516 million compared to TWD 2,727 million last year, with net income at TWD 348 million versus TWD 827 million previously. However, for the nine months ended September 2024, net income improved to TWD 1,870 million from TWD 1,458 million a year ago indicating resilience amidst fluctuating quarterly results.

• Click to explore a detailed breakdown of our findings in Transcend Information's health report.

• Learn about Transcend Information's historical performance.

Where To Now?

• Take a closer look at our Undiscovered Gems With Strong Fundamentals list of 4666 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Ready For A Different Approach?

• 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.

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