Uncovering 3 Hidden Small Caps in Asia with Strong Foundations

Amidst global market fluctuations and economic uncertainty, small-cap stocks in Asia present a unique opportunity for investors seeking growth potential. In this environment, identifying stocks with strong foundations becomes crucial as these companies can offer resilience and promise despite broader market challenges.

Top 10 Undiscovered Gems With Strong Fundamentals In Asia

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
104	NA	10.09%	12.01%	★★★★★★
DoshishaLtd	NA	2.69%	2.22%	★★★★★★
Ve Wong	12.09%	0.90%	4.16%	★★★★★★
Ohashi Technica	NA	5.69%	-10.83%	★★★★★★
Guangdong Lingxiao Pump IndustryLtd	NA	-0.13%	3.94%	★★★★★★
ManpowerGroup Greater China	NA	15.01%	0.09%	★★★★★★
Shantou Institute of Ultrasonic Instrument	NA	17.40%	16.47%	★★★★★★
Lee's Pharmaceutical Holdings	13.81%	-0.34%	-27.47%	★★★★★☆
Qingdao Daneng Environmental Protection Equipment	65.76%	31.58%	23.66%	★★★★☆☆
Fengyinhe Holdings	0.60%	39.37%	65.41%	★★★★☆☆

Click here to see the full list of 2614 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Beijing Scitop Bio-tech (SZSE:300858)

Simply Wall St Value Rating: ★★★★★★

Overview: Beijing Scitop Bio-tech Co., Ltd. focuses on the research, development, manufacturing, and sale of probiotic lactic acid bacteria and related products in China, with a market capitalization of CN¥4.63 billion.

Operations: Beijing Scitop Bio-tech generates revenue through the sale of probiotic lactic acid bacteria products. The company's net profit margin is a key financial metric to consider, reflecting its profitability after all expenses.

Beijing Scitop Bio-tech, a nimble player in the biotech sector, has shown resilience with earnings growth of 4.6% over the past year, outpacing the food industry's -5.5%. The company reported CNY 77.61 million in sales for Q1 2025, up from CNY 59.03 million a year ago, alongside net income rising to CNY 20.33 million from CNY 18.52 million previously. Despite being debt-free and having high-quality earnings, its share price has been highly volatile recently. A cash dividend of CNY 1.50 per ten shares was approved for shareholders at their recent AGM on May 21, highlighting ongoing shareholder returns amidst industry challenges.

• Get an in-depth perspective on Beijing Scitop Bio-tech's performance by reading our health report here.

• Gain insights into Beijing Scitop Bio-tech's historical performance by reviewing our past performance report.

Syntec Technology (TPEX:7750)

Simply Wall St Value Rating: ★★★★★☆

Overview: Syntec Technology Co., Ltd. manufactures PC-based digital controllers specializing in machine tools, with a market cap of NT$41.15 billion.

Operations: Syntec Technology generates revenue primarily from the sale of PC-based digital controllers for machine tools. The company's financial performance is influenced by its ability to manage costs and maintain competitive pricing in the market.

Syntec Technology seems to be making waves with its impressive earnings growth of 73.3% over the past year, outpacing the Machinery industry's 9.1%. The company reported first-quarter sales of TWD 3.25 billion, up from TWD 2.33 billion a year ago, and net income reached TWD 481.7 million compared to TWD 306.85 million previously, showcasing robust performance. With basic earnings per share rising to TWD 7.68 from last year's TWD 5.18 and maintaining high-quality past earnings, Syntec appears financially sound with more cash than total debt and positive free cash flow despite recent share price volatility.

• Dive into the specifics of Syntec Technology here with our thorough health report.

• Review our historical performance report to gain insights into Syntec Technology's's past performance.

Keiyo Bank (TSE:8544)

Simply Wall St Value Rating: ★★★★☆☆

Overview: The Keiyo Bank, Ltd. provides a range of banking products and services to individual, corporate, and business customers in Japan, with a market cap of ¥116.80 billion.

Operations: Keiyo Bank generates revenue primarily through interest income from loans and securities investments, along with fees and commissions from various banking services. The bank's net profit margin has shown variability, reflecting changes in operational efficiency and market conditions. Operating costs include personnel expenses, administrative costs, and provisions for credit losses.

With total assets of ¥6.56 trillion and equity of ¥310.7 billion, Keiyo Bank stands out with its robust financial structure, despite a volatile share price recently. The bank's deposits reach ¥5.54 trillion while loans total ¥4.35 trillion, highlighting its significant market footprint in the region. However, it struggles with a low allowance for bad loans at 24%, though non-performing loans are appropriately managed at 1.3%. Trading at 29% below estimated fair value and backed by customer deposits as primary funding, Keiyo seems undervalued yet stable amidst industry challenges and dividend increases signal shareholder confidence.

• Unlock comprehensive insights into our analysis of Keiyo Bank stock in this health report.

• Explore historical data to track Keiyo Bank's performance over time in our Past section.

Seize The Opportunity

• Embark on your investment journey to our 2614 Asian Undiscovered Gems With Strong Fundamentals selection here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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