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Beijing Tongyizhong New Material Technology And 2 Other Undiscovered Gems In Asia

Simply Wall St · 05/13/2025 04:03

Amid hopes for tariff de-escalation and the potential for broader negotiations between the U.S. and China, small- and mid-cap indexes have shown resilience, posting gains for the fifth consecutive week. In this environment of cautious optimism, investors are increasingly looking towards undiscovered gems in Asia that offer innovative solutions and growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In Asia

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
Otec 8.17% 3.43% 1.06% ★★★★★★
Kanro NA 6.67% 37.24% ★★★★★★
Korea Ratings NA 0.74% 1.47% ★★★★★★
Konishi 0.15% 0.46% 12.50% ★★★★★★
Thai Steel Cable NA 3.84% 18.67% ★★★★★★
Dura Tek 4.98% 42.18% 94.37% ★★★★★☆
Billion Industrial Holdings 7.13% 18.54% -14.41% ★★★★★☆
VCREDIT Holdings 115.47% 25.47% 30.34% ★★★★☆☆
Silvery Dragon Prestressed MaterialsLTD Tianjin 30.19% 1.25% 4.96% ★★★★☆☆
Yukiguni Factory 134.59% -3.29% -32.04% ★★★★☆☆

Click here to see the full list of 2666 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Beijing Tongyizhong New Material Technology (SHSE:688722)

Simply Wall St Value Rating: ★★★★★☆

Overview: Beijing Tongyizhong New Material Technology Corporation focuses on the research, development, production, and sale of ultra-high molecular weight polyethylene fibers and composite materials both in China and internationally, with a market cap of CN¥5.61 billion.

Operations: Tongyizhong generates revenue primarily from the sale of ultra-high molecular weight polyethylene fibers and composite materials. The company's financial performance includes tracking key metrics such as gross profit margin, which is a critical indicator of its profitability.

Beijing Tongyizhong New Material Technology, a smaller player in the industry, has shown impressive growth with earnings surging 33% last year, outpacing the broader Chemicals sector. The company reported first-quarter sales of CNY 252.99 million, more than doubling from CNY 111.5 million a year earlier, and net income reached CNY 43.4 million compared to CNY 17.55 million previously. Despite its debt-to-equity ratio increasing from 3% to 12.4% over five years, it holds more cash than total debt, suggesting financial flexibility and resilience amidst market volatility and competitive pressures in the materials sector.

SHSE:688722 Debt to Equity as at May 2025
SHSE:688722 Debt to Equity as at May 2025

Ongoal Technology (SZSE:301662)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Ongoal Technology Co., Ltd. focuses on the research, design, production, and sale of material handling and automation equipment in China with a market capitalization of CN¥5.06 billion.

Operations: The primary revenue stream for Ongoal Technology comes from its Industrial Automation & Controls segment, generating CN¥2.16 billion.

Ongoal Technology, a notable player in the Asian market, recently completed an IPO raising CNY 532 million. Despite a dip in annual sales to CNY 2.16 billion from CNY 3.20 billion, net income stood at CNY 220 million for 2024. The company boasts high-quality earnings and has its interest payments well covered with EBIT at 19 times interest expenses. However, earnings growth faced challenges with a negative rate of -30% compared to the industry average of 1.6%. Ongoal's inclusion in major indices like the Shenzhen Composite Index highlights its growing recognition despite liquidity concerns.

SZSE:301662 Earnings and Revenue Growth as at May 2025
SZSE:301662 Earnings and Revenue Growth as at May 2025

WinWay Technology (TWSE:6515)

Simply Wall St Value Rating: ★★★★★★

Overview: WinWay Technology Co., Ltd. specializes in designing, processing, and selling optoelectronic product test fixtures and integrated circuit test interfaces globally, with a market cap of NT$34.53 billion.

Operations: WinWay Technology generates revenue primarily from the sale of optoelectronic product test fixtures and integrated circuit test interfaces across various regions including Taiwan, the Americas, China, Asia, Europe, and Canada. The company has a market capitalization of NT$34.53 billion.

WinWay Technology, a nimble player in the semiconductor space, has seen its earnings skyrocket by 207% over the past year, outpacing the industry's 17% growth. The company's price-to-earnings ratio of 21.6x is attractive compared to the sector's average of 24x. Despite recent share price volatility, WinWay remains financially sound with more cash than total debt and a reduced debt-to-equity ratio from 3.9% to 2.8% over five years. Recent quarterly sales reached TWD 2.3 billion, nearly doubling from last year, while net income hit TWD 612 million up from TWD 200 million previously reported for Q1 last year.

TWSE:6515 Earnings and Revenue Growth as at May 2025
TWSE:6515 Earnings and Revenue Growth as at May 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.