<div id="readability-page-1"><div><p>As the Asian markets continue to show resilience amid global economic shifts, investors are increasingly seeking opportunities in undervalued stocks that could offer potential value. In this environment, identifying stocks with strong fundamentals and growth potential can be crucial for those looking to capitalize on the region's evolving economic landscape.</p><h3>Top 10 Undervalued Stocks Based On Cash Flows In Asia</h3><table><tbody><tr><td><strong>Name</strong></td><td><strong>Current Price</strong></td><td><strong>Fair Value (Est)</strong></td><td><strong>Discount (Est)</strong></td></tr><tr><td>Zhejiang Jiemei Electronic And Technology (SZSE:002859)</td><td>CN¥30.18</td><td>CN¥59.32</td><td>49.1%</td></tr><tr><td>Venustech Group (SZSE:002439)</td><td>CN¥15.76</td><td>CN¥31.03</td><td>49.2%</td></tr><tr><td>TLB (KOSDAQ:A356860)</td><td>₩59400.00</td><td>₩116343.68</td><td>48.9%</td></tr><tr><td>PharmaResearch (KOSDAQ:A214450)</td><td>₩425500.00</td><td>₩844532.22</td><td>49.6%</td></tr><tr><td>Komehyo HoldingsLtd (TSE:2780)</td><td>¥3295.00</td><td>¥6536.85</td><td>49.6%</td></tr><tr><td>Higold Group (SZSE:001221)</td><td>CN¥59.88</td><td>CN¥119.61</td><td>49.9%</td></tr><tr><td>Hainan Jinpan Smart Technology (SHSE:688676)</td><td>CN¥96.00</td><td>CN¥187.84</td><td>48.9%</td></tr><tr><td>Contec.Co.Ltd (KOSDAQ:A451760)</td><td>₩14820.00</td><td>₩29174.51</td><td>49.2%</td></tr><tr><td>Beijing HyperStrong Technology (SHSE:688411)</td><td>CN¥256.10</td><td>CN¥501.11</td><td>48.9%</td></tr><tr><td>Apex Mining (PSE:APX)</td><td>₱13.88</td><td>₱27.62</td><td>49.7%</td></tr></tbody></table><p>Click here to see the full list of 259 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.</p><p>Here we highlight a subset of our preferred stocks from the screener.</p><h2>DFI Retail Group Holdings (SGX:D01)</h2><p><strong>Overview:</strong> DFI Retail Group Holdings Limited operates as a retailer across several Asian markets including Hong Kong, Mainland China, Macau, Taiwan, Singapore, Cambodia, Malaysia, Indonesia and Brunei with a market cap of $5.41 billion.</p><p><strong>Operations:</strong> The company's revenue segments consist of Food at $3.10 billion, Convenience at $2.34 billion, Home Furnishings at $680.30 million, and Health and Beauty at $2.54 billion.</p><p><strong>Estimated Discount To Fair Value:</strong> 38.1%</p><p>DFI Retail Group Holdings is trading at US$4, significantly below its estimated fair value of US$6.47, indicating potential undervaluation based on cash flows. Despite expected revenue declines of 0.7% annually over the next three years, earnings are forecast to grow substantially at 79.49% per year, with profitability anticipated to improve above market averages. However, the current dividend yield of 2.63% is not well covered by earnings, posing a risk for income-focused investors.</p><ul><li>Our comprehensive growth report raises the possibility that DFI Retail Group Holdings is poised for substantial financial growth.</li><li>Click here and access our complete balance sheet health report to understand the dynamics of DFI Retail Group Holdings.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8636cfaa-4888-409a-adeb-1b900f9f7c3a/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8636cfaa-4888-409a-adeb-1b900f9f7c3a/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>SGX:D01 Discounted Cash Flow as at Jan 2026</figcaption></figure><h2>GEM (SZSE:002340)</h2><p><strong>Overview:</strong> GEM Co., Ltd. operates in the waste resource comprehensive utilization industry both in China and internationally, with a market cap of CN¥45.51 billion.</p><p><strong>Operations:</strong> GEM Co., Ltd. generates revenue from its operations in the waste resource comprehensive utilization industry, both domestically and internationally.</p><p><strong>Estimated Discount To Fair Value:</strong> 30%</p><p>GEM Co., Ltd. is trading at CN¥8.94, below its estimated fair value of CN¥12.78, suggesting it is undervalued based on cash flows. Earnings are forecast to grow significantly at 38.3% annually, outpacing the Chinese market's growth rate of 28.1%. Despite these prospects, the company's return on equity is projected to remain low at 12.2%, and its dividend yield of 0.74% lacks coverage by free cash flows, highlighting potential financial constraints.</p><ul><li>The analysis detailed in our GEM growth report hints at robust future financial performance.</li><li>Unlock comprehensive insights into our analysis of GEM stock in this financial health report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/877e0804-6929-4a76-abb1-0a3cb2191827/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/877e0804-6929-4a76-abb1-0a3cb2191827/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>SZSE:002340 Discounted Cash Flow as at Jan 2026</figcaption></figure><h2>Tokai Carbon (TSE:5301)</h2><p><strong>Overview:</strong> Tokai Carbon Co., Ltd. manufactures and sells carbon-related products and services in Japan, with a market cap of ¥225.46 billion.</p><p><strong>Operations:</strong> The company's revenue segments include Fine Carbon at ¥55.55 billion, Carbon Black at ¥148.36 billion, Graphite Electrodes at ¥40.33 billion, Smelting and Lining at ¥60.23 billion, and Industrial Furnaces and Related Products at ¥15.72 billion.</p><p><strong>Estimated Discount To Fair Value:</strong> 43.1%</p><p>Tokai Carbon Co., Ltd. is trading at ¥1,056, significantly below its estimated fair value of ¥1,857.02, reflecting potential undervaluation based on cash flows. The company anticipates earnings growth of 57.12% annually, surpassing the market average despite slower revenue growth (4.8%). Recent strategic reorganization of U.S. subsidiaries aims to enhance operational efficiency and governance but dividend sustainability remains a concern with inadequate earnings coverage amidst these developments.</p><ul><li>Our earnings growth report unveils the potential for significant increases in Tokai Carbon's future results.</li><li>Navigate through the intricacies of Tokai Carbon with our comprehensive financial health report here.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/396fbc11-8e39-4de3-988c-dd5ec66b53be/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/396fbc11-8e39-4de3-988c-dd5ec66b53be/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>TSE:5301 Discounted Cash Flow as at Jan 2026</figcaption></figure><h2>Key Takeaways</h2><ul><li>Investigate our full lineup of 259 Undervalued Asian Stocks Based On Cash Flows right here.</li><li>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.</li><li>Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.</li></ul><h2>Seeking Other Investments?</h2><ul><li>Explore high-performing small cap companies that haven't yet garnered significant analyst attention.</li><li>Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.</li><li>Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

<p>As Asian markets show resilience, investors are targeting undervalued stocks with strong fundamentals. Key picks include Zhejiang Jiemei Electronic, Venustech Group, and DFI Retail Group Holdings, all trading below their estimated fair values. DFI Retail is expected to grow earnings significantly despite a slight revenue decline, while GEM Co. and Tokai Carbon also show promising growth potential. However, concerns about dividend sustainability and financial constraints persist. This analysis highlights opportunities for investors looking to capitalize on the evolving Asian economic landscape.</p>

Asian Market's January 2026 Stock Picks With Estimated Value Opportunities