Discovering Undiscovered Gems in Asia June 2025

As global markets navigate a complex landscape of cooling labor markets and geopolitical tensions, the Asian market presents intriguing opportunities for investors seeking growth potential. In particular, small-cap stocks in Asia are capturing attention due to their resilience and adaptability amid fluctuating economic indicators, making them appealing candidates for those looking to uncover hidden gems in an evolving market environment.

Top 10 Undiscovered Gems With Strong Fundamentals In Asia

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Wuxi Xinan Technology	NA	11.99%	4.45%	★★★★★★
Hangzhou Xili Intelligent TechnologyLtd	NA	11.73%	9.57%	★★★★★★
Hubei Three Gorges Tourism Group	11.24%	-15.32%	17.90%	★★★★★★
Shangri-La Hotel	NA	23.33%	39.56%	★★★★★★
Hongmian Zhihui Science and Technology InnovationLtd.Guangzhou	15.92%	-28.99%	46.16%	★★★★★★
Tohoku Steel	NA	5.34%	-2.26%	★★★★★★
Lee's Pharmaceutical Holdings	13.81%	-0.34%	-27.47%	★★★★★☆
KC	2.19%	8.76%	-0.47%	★★★★★☆
ASRock Rack Incorporation	26.93%	225.32%	6287.64%	★★★★☆☆
Tibet TourismLtd	27.63%	9.10%	17.00%	★★★★☆☆

Click here to see the full list of 2608 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

ChengDu ShengNuo BiotecLtd (SHSE:688117)

Simply Wall St Value Rating: ★★★★★☆

Overview: ChengDu ShengNuo Biotec Co., Ltd. focuses on the research, development, production, sale, and export of peptide drugs and has a market capitalization of CN¥5.46 billion.

Operations: ShengNuo Biotec generates revenue primarily through the sale and export of peptide drugs. The company's financial performance is highlighted by its net profit margin, which has shown significant variation over recent periods.

ChengDu ShengNuo Biotec Ltd, a small player in the biotech sector, has shown impressive financial growth recently. Its Q1 2025 earnings reported sales of CNY 184.34 million, a significant jump from CNY 104.06 million the previous year. Net income also rose to CNY 47.12 million from CNY 16.47 million, showcasing strong profitability with basic earnings per share increasing to CNY 0.42 from CNY 0.15 last year. Despite its volatile share price over the past three months, the company’s debt is well managed with an EBIT interest coverage of 14 times and a satisfactory net debt to equity ratio of approximately 28%.

• Click here to discover the nuances of ChengDu ShengNuo BiotecLtd with our detailed analytical health report.

• Assess ChengDu ShengNuo BiotecLtd's past performance with our detailed historical performance reports.

Innuovo Technology (SZSE:000795)

Simply Wall St Value Rating: ★★★★★★

Overview: Innuovo Technology Co., Ltd. operates in the research, development, production, and sale of rare earth permanent magnet materials both in China and internationally, with a market capitalization of CN¥12.20 billion.

Operations: The company's revenue primarily stems from the sale of rare earth permanent magnet materials. The net profit margin has shown variability, reflecting changes in cost structures and market conditions.

Innuovo Technology, a smaller player in Asia's tech scene, has been making waves with its impressive financial performance. Over the past year, earnings surged by 114%, outpacing the industry average of -4.4%. The company trades at 49% below its estimated fair value, indicating potential undervaluation. Despite a slight dip in sales to CNY 839 million from CNY 895 million last year, net income rose to CNY 69 million from CNY 66 million. Innuovo also announced a final cash dividend of CNY 1.24 per share for A shares in 2024 and completed a significant buyback of nearly 19 million shares worth over CNY106 million.

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

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

Guomai Technologies (SZSE:002093)

Simply Wall St Value Rating: ★★★★★★

Overview: Guomai Technologies, Inc. operates in China offering internet of things technology services, consulting and design, science park operation and development, as well as education services with a market cap of CN¥11.88 billion.

Operations: Guomai Technologies generates revenue primarily through its internet of things technology services, consulting and design, science park operation and development, and education services. The company focuses on providing comprehensive solutions in these areas to drive its financial performance. Net profit margin trends provide insight into the company's profitability dynamics over time.

Guomai Technologies, a debt-free player in the IT sector, stands out with a Price-To-Earnings ratio of 59x, notably lower than the industry average of 85.4x. The company recently reported impressive earnings growth of 67.4% over the past year, significantly outperforming the IT industry's -13.7%. Despite some volatility in its share price recently, Guomai's financial health remains robust with a notable one-off gain of CN¥81.8M impacting its latest results as of March 2025. Additionally, their dividend strategy includes a cash distribution plan offering CN¥0.80 per 10 shares for 2024 profits, indicating solid shareholder returns.

• Delve into the full analysis health report here for a deeper understanding of Guomai Technologies.

• Examine Guomai Technologies' past performance report to understand how it has performed in the past.

Taking Advantage

• Investigate our full lineup of 2608 Asian Undiscovered Gems With Strong Fundamentals right here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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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