Asian markets have been buoyed by recent developments, including a new trade deal between the U.S. and China, which has lifted investor sentiment and supported gains across major indices. For investors willing to explore beyond well-known stocks, penny stocks—often representing smaller or newer companies—continue to offer intriguing opportunities despite being considered an outdated term. In this article, we highlight three penny stocks that demonstrate strong financial resilience and potential for growth in the evolving Asian market landscape.
Name |
Share Price |
Market Cap |
Financial Health Rating |
YKGI (Catalist:YK9) |
SGD0.101 |
SGD42.92M |
★★★★★★ |
Lever Style (SEHK:1346) |
HK$1.26 |
HK$795M |
★★★★★★ |
Perfect Medical Health Management (SEHK:1830) |
HK$1.76 |
HK$2.21B |
★★★★★★ |
CNMC Goldmine Holdings (Catalist:5TP) |
SGD0.42 |
SGD170.22M |
★★★★★☆ |
Goodbaby International Holdings (SEHK:1086) |
HK$1.10 |
HK$1.84B |
★★★★★★ |
Yangzijiang Shipbuilding (Holdings) (SGX:BS6) |
SGD2.22 |
SGD8.74B |
★★★★★☆ |
Beng Kuang Marine (SGX:BEZ) |
SGD0.175 |
SGD34.86M |
★★★★★★ |
BRC Asia (SGX:BEC) |
SGD3.08 |
SGD845M |
★★★★★★ |
Bosideng International Holdings (SEHK:3998) |
HK$4.46 |
HK$51.09B |
★★★★★★ |
United Energy Group (SEHK:467) |
HK$0.50 |
HK$12.92B |
★★★★★★ |
Click here to see the full list of 1,024 stocks from our Asian Penny Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: China Oriental Group Company Limited manufactures and sells iron and steel products for downstream steel manufacturers in the People’s Republic of China, with a market cap of HK$4.69 billion.
Operations: The company’s revenue is primarily derived from its Iron and Steel segment, which generated CN¥42.86 billion, while its Real Estate segment contributed CN¥96.83 million.
Market Cap: HK$4.69B
China Oriental Group has recently become profitable, though its earnings have declined significantly over the past five years. The company’s short-term assets comfortably cover both its short and long-term liabilities, indicating solid financial footing. However, operating cash flow does not adequately cover debt levels. Despite trading well below estimated fair value, the Return on Equity remains low at 0.9%. A special dividend of HK$0.05 per share was announced alongside a final dividend of HK$0.01 per share for 2024, reflecting an unstable but present dividend track record amidst volatile earnings performance impacted by significant one-off losses last year.
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Global New Material International Holdings Limited is an investment holding company that produces and sells pearlescent pigment, functional mica filler, and related products in China and South Korea, with a market cap of HK$6.03 billion.
Operations: The company generates revenue from its operations in the PRC, amounting to CN¥1.33 billion, and in Korea, totaling CN¥316.59 million.
Market Cap: HK$6.03B
Global New Material International Holdings demonstrates robust revenue generation with CN¥1.65 billion in sales for 2024, primarily from China and South Korea. The company’s financial health is supported by short-term assets exceeding liabilities, though its debt coverage by operating cash flow remains insufficient at 11.2%. Despite a low Return on Equity of 7.4%, the company has experienced significant earnings growth of 33.4% over the past year, outpacing industry averages and showing acceleration compared to its five-year growth rate. Recent board appointments aim to enhance governance as it aligns with upcoming regulatory changes in Hong Kong’s listing rules.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Food Empire Holdings Limited is an investment holding company that manufactures and distributes food and beverage products across Russia, Ukraine, Kazakhstan, CIS markets, South-East Asia, South Asia, and internationally with a market cap of SGD1 billion.
Operations: The company’s revenue is primarily derived from South Asia ($264.76 million), Russia ($147.23 million), Ukraine, Kazakhstan and CIS regions ($124.68 million), and South-East Asia ($83.01 million).
Market Cap: SGD1B
Food Empire Holdings, with a market cap of SGD1 billion, shows strong financial stability as its short-term assets ($305.7M) comfortably cover both short-term ($99.3M) and long-term liabilities ($64.7M). Despite negative earnings growth last year, the company has achieved significant profit growth of 21.2% annually over five years and forecasts a 9.02% increase in earnings per year moving forward. Trading significantly below estimated fair value presents a potential opportunity for investors seeking undervalued stocks in the sector. However, dividends are not well covered by free cash flows, highlighting potential sustainability concerns despite recent dividend increases and special payouts.
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 SEHK:581 SEHK:6616 and SGX:F03.
This article was originally published by Simply Wall St.
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