Hunan Hualian China Industry And 2 Other Undiscovered Gems With Strong Potential

As Chinese equities experience a boost from recent central bank support measures, the Shanghai Composite Index has shown positive movement, reflecting growing optimism in the market. With economic growth surpassing expectations yet still trailing official targets, investors are increasingly attentive to small-cap opportunities that may offer strong potential amidst these evolving conditions. In this context, identifying stocks with robust fundamentals and growth prospects can be particularly rewarding for those looking to capitalize on China's dynamic market landscape.

Top 10 Undiscovered Gems With Strong Fundamentals In China

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Hangzhou Fortune Gas Cryogenic Group

8.86%

3.45%

14.40%

★★★★★★

Shanghai Haixin Group

0.87%

3.75%

7.37%

★★★★★★

Hunan Hansen Pharmaceutical

4.36%

2.88%

6.53%

★★★★★★

Sinotherapeutics

NA

76.64%

0.81%

★★★★★★

Shenzhen Zhongheng Huafa

NA

1.38%

19.38%

★★★★★★

Aeolus Tyre

35.66%

-1.22%

10.27%

★★★★★☆

Chengdu Tangyuan ElectricLtd

2.81%

20.66%

9.04%

★★★★★☆

Silvery Dragon Prestressed MaterialsLTD Tianjin

22.46%

0.77%

-3.26%

★★★★☆☆

Sichuan Dowell Science and Technology

33.70%

13.47%

-12.57%

★★★★☆☆

Baoding Technology

69.11%

37.22%

43.31%

★★★★☆☆

Click here to see the full list of 894 stocks from our Chinese Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Hunan Hualian China Industry

Simply Wall St Value Rating: ★★★★★★

Overview: Hunan Hualian China Industry Co., Ltd. is involved in the design, research, development, production, and sale of ceramic products in China with a market capitalization of CN¥3.16 billion.

Operations: The company generates revenue primarily from the sale of ceramic products. It focuses on design, research, development, production, and sales within China. The market capitalization stands at CN¥3.16 billion.

Hunan Hualian China Industry, a smaller player in its sector, is showing promising signs with no debt and a price-to-earnings ratio of 16.3x, notably below the CN market's 32.6x. Earnings have grown by 16.8% over the past year, outpacing the Consumer Durables industry average of 10.2%. Recent financials highlight sales reaching CNY 580.66 million for the first half of 2024, up from CNY 556.55 million last year, while net income rose to CNY 98.52 million from CNY 84.03 million previously; basic earnings per share increased to CNY 0.39 from CNY 0.33 a year ago.

SZSE:001216 Earnings and Revenue Growth as at Oct 2024
SZSE:001216 Earnings and Revenue Growth as at Oct 2024

Chengdu RML Technology

Simply Wall St Value Rating: ★★★★★★

Overview: Chengdu RML Technology Co., Ltd. specializes in the research, development, manufacture, and testing of millimeter-wave microsystems with a market capitalization of CN¥13.01 billion.

Operations: RML Technology generates revenue primarily through its millimeter-wave microsystems. The company has a market capitalization of approximately CN¥13.01 billion, reflecting its position in the industry.

Chengdu RML Technology, a smaller player in the tech industry, has been making waves with its robust financial performance. Over the past year, earnings surged by 41%, outpacing the Aerospace & Defense sector's -15.7%. The company reported sales of CNY 1.17 billion for the first nine months of 2024, up from CNY 725 million last year, while net income climbed to CNY 373.8 million from CNY 264.28 million. With a price-to-earnings ratio of 31x below the CN market average and a reduced debt-to-equity ratio from 7.9 to just over one in five years, Chengdu RML seems well-positioned for continued growth despite recent share price volatility and strategic stock splits aimed at enhancing liquidity and shareholder value perception.

SZSE:301050 Earnings and Revenue Growth as at Oct 2024
SZSE:301050 Earnings and Revenue Growth as at Oct 2024

Zhejiang Top Cloud-agri TechnologyLtd

Simply Wall St Value Rating: ★★★★★★

Overview: Zhejiang Top Cloud-agri Technology Co., Ltd. focuses on agricultural technology solutions and has a market cap of CN¥12.45 billion.

Operations: Due to the absence of specific financial data in the provided text, a detailed summary of Zhejiang Top Cloud-agri Technology Co., Ltd.'s revenue streams and cost breakdowns cannot be constructed.

Zhejiang Top Cloud-agri Technology, a nimble player in China's tech landscape, has shown impressive earnings growth of 24.1% over the past year, outpacing the broader electronics industry which saw a -3.4% change. The company's debt to equity ratio improved significantly from 7.1 to 1.7 over five years, indicating better financial health and stability. Recently added to major indices like the Shenzhen Stock Exchange Composite Index, it completed an IPO raising CNY 309 million at CNY 14.5 per share, reflecting strong market interest despite its shares being highly illiquid historically.

SZSE:301556 Debt to Equity as at Oct 2024
SZSE:301556 Debt to Equity as at Oct 2024

Key Takeaways

Interested In Other Possibilities?

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.

Companies discussed in this article include SZSE:001216 SZSE:301050 and SZSE:301556.

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