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    Asian Market Insights: Anhui Jinhe IndustrialLtd And Two Other Stocks Estimated Below Fair Value

    Simply Wall St·12/19/2025 04:07:51
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    As global markets navigate a period of economic uncertainty, the Asian stock market presents unique opportunities for discerning investors. With interest rates being adjusted across major economies and concerns about technology valuations impacting indices, identifying stocks that are estimated to be below their fair value can offer potential benefits. In this context, understanding what makes a stock undervalued—such as strong fundamentals or growth potential not yet reflected in its price—is crucial for those looking to explore investment opportunities in Asia's diverse markets.

    Top 10 Undervalued Stocks Based On Cash Flows In Asia

    Name Current Price Fair Value (Est) Discount (Est)
    Zhejiang Jiemei Electronic And Technology (SZSE:002859) CN¥30.52 CN¥59.85 49%
    Xi'an NovaStar Tech (SZSE:301589) CN¥154.80 CN¥304.27 49.1%
    Wuhan Guide Infrared (SZSE:002414) CN¥12.93 CN¥25.33 48.9%
    Tianqi Lithium (SZSE:002466) CN¥52.10 CN¥102.06 49%
    LOIVELtd (TSE:352A) ¥811.00 ¥1596.04 49.2%
    JINS HOLDINGS (TSE:3046) ¥5620.00 ¥10986.85 48.8%
    Global Security Experts (TSE:4417) ¥2880.00 ¥5744.07 49.9%
    Daiichi Sankyo Company (TSE:4568) ¥3341.00 ¥6544.37 48.9%
    Andes Technology (TWSE:6533) NT$243.50 NT$484.94 49.8%
    ActRO (KOSDAQ:A290740) ₩12550.00 ₩25085.06 50%

    Click here to see the full list of 276 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

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

    Anhui Jinhe IndustrialLtd (SZSE:002597)

    Overview: Anhui Jinhe Industrial Co., Ltd. specializes in the research, development, production, and sales of food additives, daily chemical flavors, bulk chemicals, and intermediates with a market cap of approximately CN¥11.22 billion.

    Operations: Anhui Jinhe Industrial Co., Ltd. generates revenue through its involvement in the research, development, production, and sales of food additives, daily chemical flavors, bulk chemicals, and intermediates.

    Estimated Discount To Fair Value: 16.4%

    Anhui Jinhe Industrial Ltd. is trading at CNY 20.5, below its estimated fair value of CNY 24.53, indicating potential undervaluation based on cash flows. Despite a slight decline in recent earnings and sales figures, the company's revenue is forecast to grow at 23.2% annually, outpacing the Chinese market's growth rate of 14.5%. However, its dividend yield of 4.05% isn't well covered by free cash flows, suggesting some caution for income-focused investors.

    SZSE:002597 Discounted Cash Flow as at Dec 2025
    SZSE:002597 Discounted Cash Flow as at Dec 2025

    PAL GROUP Holdings (TSE:2726)

    Overview: PAL GROUP Holdings CO., LTD. operates in Japan, focusing on the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories, with a market cap of ¥368.48 billion.

    Operations: The company's revenue is derived from two main segments: the Clothing Business, which generates ¥138.52 billion, and the Miscellaneous Goods Business, contributing ¥84.72 billion.

    Estimated Discount To Fair Value: 13.5%

    PAL GROUP Holdings is trading at ¥2,122, below its estimated fair value of ¥2,451.97, reflecting potential undervaluation based on cash flows. Earnings are forecast to grow at 17.3% annually, outpacing the Japanese market's 8.5% growth rate. However, recent management changes due to health issues could introduce uncertainty in leadership stability. Despite these challenges, the company's robust revenue and earnings growth forecasts may attract investors seeking undervalued opportunities in Asia's markets.

    TSE:2726 Discounted Cash Flow as at Dec 2025
    TSE:2726 Discounted Cash Flow as at Dec 2025

    Plus Alpha ConsultingLtd (TSE:4071)

    Overview: Plus Alpha Consulting Co., Ltd. offers marketing and HR solutions in Japan, with a market cap of ¥103.89 billion.

    Operations: The company generates revenue from HR Solutions amounting to ¥13.25 billion and Marketing Solutions totaling ¥3.84 billion.

    Estimated Discount To Fair Value: 46.5%

    Plus Alpha Consulting Ltd. is trading at ¥2,452, significantly below its estimated fair value of ¥4,583.61, highlighting potential undervaluation based on cash flows. Earnings are forecast to grow by 18.7% annually, surpassing the Japanese market's 8.5% growth rate, while revenue is expected to increase by 12.3% per year. Despite extraordinary losses from impairment charges on subsidiaries and recent dividend hikes aiming for sustainable growth, the company's financial outlook remains promising for investors seeking value in Asia.

    TSE:4071 Discounted Cash Flow as at Dec 2025
    TSE:4071 Discounted Cash Flow as at Dec 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.