Undiscovered Gems In Global And 2 Other Promising Small Caps Backed By Strong Fundamentals

Amidst a backdrop of renewed U.S.-China trade tensions and concerns over a prolonged government shutdown, global markets have experienced volatility, with small-cap indices like the S&P 600 facing downward pressure. In this challenging environment, discerning investors are increasingly focused on identifying small-cap stocks with robust fundamentals that can withstand economic uncertainties and potentially offer long-term growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Brillian Network & Automation Integrated System	NA	23.32%	24.44%	★★★★★★
Baazeem Trading	8.48%	-1.74%	-2.37%	★★★★★★
Qassim Cement	NA	0.78%	-14.90%	★★★★★★
MOBI Industry	18.09%	6.66%	22.02%	★★★★★★
Savior Lifetec	NA	-11.44%	15.18%	★★★★★★
Wholetech System Hitech	6.48%	14.41%	19.21%	★★★★★☆
Freetrailer Group	0.01%	22.96%	31.56%	★★★★★☆
Uniplus Electronics	45.33%	46.79%	73.91%	★★★★★☆
Practic	NA	4.86%	6.64%	★★★★☆☆
Fengyinhe Holdings	9.39%	53.36%	74.10%	★★★★☆☆

Click here to see the full list of 2925 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Fujian Highton Development (SHSE:603162)

Simply Wall St Value Rating: ★★★★★★

Overview: Fujian Highton Development Co., Ltd. operates in the coastal and international ocean dry bulk transportation sector, with a market capitalization of CN¥8.58 billion.

Operations: Highton Development generates revenue primarily from its coastal and international ocean dry bulk transportation services. The company's financial performance includes a net profit margin of 12.5%, reflecting its profitability in the sector.

Fujian Highton Development, a smaller player in its sector, has shown notable financial dynamics recently. Earnings grew by 34% over the past year, outpacing the shipping industry average. The company's debt situation seems manageable with interest payments well covered by EBIT at 8.5 times coverage and positive shareholder equity compared to five years ago when it was negative. Despite these positives, net income for the first half of 2025 fell to CNY 86.87 million from CNY 242.25 million a year earlier, reflecting challenges in profitability despite revenue growth to CNY 1,800 million from CNY 1,686 million last year.

• Click here to discover the nuances of Fujian Highton Development with our detailed analytical health report.

• Explore historical data to track Fujian Highton Development's performance over time in our Past section.

Tangshan Sunfar Silicon IndustriesLtd (SHSE:603938)

Simply Wall St Value Rating: ★★★★★☆

Overview: Tangshan Sunfar Silicon Industries Co., Ltd. is engaged in the production and sale of silicon-based products, with a market capitalization of approximately CN¥6.10 billion.

Operations: Sunfar generates revenue primarily from its chemical industry segment, amounting to CN¥1.87 billion. The company has observed variations in its net profit margin over time, reflecting changes in operational efficiency and market conditions.

Tangshan Sunfar Silicon Industries, a lesser-known player in the chemicals sector, has demonstrated notable growth. Over the past year, earnings surged by 102.5%, significantly outpacing the industry average of 1.9%. Despite this impressive performance, net income for H1 2025 was CNY 38.46 million compared to CNY 40.74 million a year earlier, indicating some challenges remain. The company's debt-to-equity ratio rose from 0% to 0.7% over five years but remains manageable with more cash than total debt and interest coverage not being an issue. Revenue for H1 reached CNY 1,008 million from last year's CNY 907 million, showcasing steady sales momentum amidst fluctuating earnings per share at CNY 0.10 down from CNY 0.11 previously.

• Click to explore a detailed breakdown of our findings in Tangshan Sunfar Silicon IndustriesLtd's health report.

• Gain insights into Tangshan Sunfar Silicon IndustriesLtd's past trends and performance with our Past report.

Zhejiang XinNong ChemicalLtd (SZSE:002942)

Simply Wall St Value Rating: ★★★★★★

Overview: Zhejiang XinNong Chemical Co., Ltd. is engaged in the research, development, production, and marketing of pesticides and pharmaceutical intermediates in China, with a market cap of CN¥3.68 billion.

Operations: XinNong Chemical generates revenue primarily from its pesticide industry, accounting for CN¥957.64 million. The company exhibits a gross profit margin trend worth noting, with recent figures showing a significant percentage.

Zhejiang XinNong Chemical, a nimble player in the chemical sector, has showcased impressive earnings growth of 366% over the past year, outpacing the industry average of 1.9%. With sales reaching CNY 550.92 million for H1 2025 compared to CNY 524.46 million last year and net income climbing to CNY 90.59 million from CNY 68.19 million, it reflects a robust financial position. The company is debt-free and enjoys high-quality earnings with free cash flow remaining positive at CNY146.61 million as of June 2024. Despite past declines in earnings over five years by an average of 35%, recent performance indicates potential resilience and growth opportunities ahead.

• Take a closer look at Zhejiang XinNong ChemicalLtd's potential here in our health report.

• Examine Zhejiang XinNong ChemicalLtd's past performance report to understand how it has performed in the past.

Next Steps

• Discover the full array of 2925 Global Undiscovered Gems With Strong Fundamentals right here.
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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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