Uncovering December 2025's Hidden Stock Gems with Strong Potential

As global markets navigate a complex landscape marked by record highs in major indices and fluctuating economic indicators, small-cap stocks have shown mixed performance, with the Russell 2000 Index edging up only slightly. Despite these challenges, the search for hidden stock gems remains crucial, as identifying companies with strong fundamentals and growth potential can offer promising opportunities amid broader market sentiment.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Soliton Systems K.K	0.47%	2.84%	2.40%	★★★★★★
Oriental Precision & EngineeringLtd	32.67%	9.30%	4.58%	★★★★★★
Saison Technology	NA	1.32%	-10.74%	★★★★★★
Baazeem Trading	10.02%	-1.27%	-1.66%	★★★★★★
Qassim Cement	NA	4.02%	-11.40%	★★★★★★
Nofoth Food Products	NA	15.49%	26.47%	★★★★★★
Quality Reliability Technology	18.75%	0.46%	-43.08%	★★★★★★
Hi-Lex	4.66%	10.06%	16.32%	★★★★★☆
Darwin	3.03%	84.88%	5.63%	★★★★☆☆
Billion Industrial Holdings	33.11%	16.86%	-16.10%	★★★★☆☆

Click here to see the full list of 2988 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

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

Jiangsu Eazytec (SHSE:688258)

Simply Wall St Value Rating: ★★★★★☆

Overview: Jiangsu Eazytec Co., Ltd. specializes in providing core firmware products for cloud computing equipment both in China and internationally, with a market cap of CN¥8.56 billion.

Operations: Jiangsu Eazytec generates revenue primarily through its core firmware products for cloud computing equipment. The company reported a net profit margin of 15.3% in the latest financial period, reflecting its ability to manage costs effectively while maintaining profitability.

Jiangsu Eazytec is making waves with its impressive earnings growth of 158.5% over the past year, outpacing the IT industry's -12.9%. The company's net debt to equity ratio stands at a satisfactory 9.7%, indicating prudent financial management, while interest payments are well covered by EBIT at 7.2x coverage. Recent results show sales climbing to CN¥262.92 million for nine months ending September 2025, up from CN¥243.38 million a year prior, with net income jumping to CN¥44.6 million from CN¥20.09 million last year and basic EPS rising to CNY0.37 from CNY0.17, reflecting strong operational performance amidst volatility in share price over the last quarter.

• Click here and access our complete health analysis report to understand the dynamics of Jiangsu Eazytec.

• Review our historical performance report to gain insights into Jiangsu Eazytec's's past performance.

Zhejiang Zhaofeng Mechanical and ElectronicLtd (SZSE:300695)

Simply Wall St Value Rating: ★★★★★★

Overview: Zhejiang Zhaofeng Mechanical and Electronic Co., Ltd. operates in the mechanical and electronic industry with a market capitalization of CN¥9.46 billion.

Operations: Zhejiang Zhaofeng generates revenue primarily from its mechanical and electronic products, contributing significantly to its financial performance. The company has a market capitalization of CN¥9.46 billion, reflecting its standing in the industry.

Zhejiang Zhaofeng, a nimble player in the auto components sector, showcases impressive growth with earnings surging 139.2% over the past year, outpacing the industry's 8% rise. The company boasts a solid balance sheet being debt-free for five years and maintains a favorable price-to-earnings ratio of 28.8x against the CN market's 45x. Recent earnings reports highlight significant progress, with net income reaching CNY 302.71 million for nine months ending September 2025, compared to CNY 91.64 million previously. However, future challenges loom as earnings are projected to decline by an average of 7.7% annually over three years.

• Delve into the full analysis health report here for a deeper understanding of Zhejiang Zhaofeng Mechanical and ElectronicLtd.

• Assess Zhejiang Zhaofeng Mechanical and ElectronicLtd's past performance with our detailed historical performance reports.

Beijing Zhidemai Technology (SZSE:300785)

Simply Wall St Value Rating: ★★★★★★

Overview: Beijing Zhidemai Technology Co., Ltd. operates in the Internet marketing and data services sector both within China and internationally, with a market capitalization of CN¥8.15 billion.

Operations: Zhidemai generates revenue primarily from its Internet marketing and data services. The company has a market capitalization of CN¥8.15 billion, reflecting its scale in the sector.

Beijing Zhidemai Technology, a nimble player in its sector, has seen its earnings grow impressively by 31.6% over the past year, outpacing the industry average of 6.7%. Despite a drop in revenue to CNY 805.99 million from CNY 1,012.2 million last year, net income rose significantly to CNY 13.45 million from CNY 3.8 million previously. The debt-to-equity ratio improved from 14.2% to a healthier 10.3% over five years, reflecting financial prudence amidst market volatility and ongoing amendments in corporate governance aimed at strengthening operational frameworks further enhance its potential appeal for future growth prospects.

• Unlock comprehensive insights into our analysis of Beijing Zhidemai Technology stock in this health report.

• Examine Beijing Zhidemai Technology's past performance report to understand how it has performed in the past.

Key Takeaways

• Embark on your investment journey to our 2988 Global Undiscovered Gems With Strong Fundamentals selection here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• 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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