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Undervalued Asian Small Caps With Insider Buying In May 2025

Undervalued Asian Small Caps With Insider Buying In May 2025

Yahoo27-05-2025

As global markets face volatility amid renewed tariff threats and fluctuating economic indicators, small-cap stocks in Asia present intriguing opportunities for investors seeking diversification. In this environment, identifying companies with strong fundamentals and insider buying can offer valuable insights into potential growth prospects despite broader market challenges.
Name
PE
PS
Discount to Fair Value
Value Rating
Security Bank
4.1x
0.9x
42.32%
★★★★★★
Puregold Price Club
8.1x
0.4x
26.02%
★★★★★☆
East West Banking
3.1x
0.7x
34.64%
★★★★★☆
Atturra
29.4x
1.2x
34.64%
★★★★★☆
Viva Energy Group
NA
0.1x
46.17%
★★★★★☆
Lion Rock Group
4.9x
0.4x
49.52%
★★★★☆☆
Dicker Data
18.9x
0.7x
-14.46%
★★★★☆☆
Smart Parking
68.0x
6.0x
49.01%
★★★☆☆☆
PWR Holdings
35.5x
4.9x
23.38%
★★★☆☆☆
Integral Diagnostics
156.5x
1.8x
43.69%
★★★☆☆☆
Click here to see the full list of 67 stocks from our Undervalued Asian Small Caps With Insider Buying screener.
We're going to check out a few of the best picks from our screener tool.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Dicker Data is a wholesale distributor specializing in computer peripherals, with a market capitalization of A$2.57 billion.
Operations: The company generates revenue primarily through wholesale distribution of computer peripherals, with a recent quarterly revenue of A$2.28 billion. Cost of Goods Sold (COGS) significantly impacts the financials, amounting to A$1.95 billion in the latest period. Operating expenses and non-operating expenses further influence net income, which stands at A$78.69 million for the same period. Notably, the gross profit margin has shown an upward trend, reaching 14.56% in recent quarters.
PE: 18.9x
Dicker Data, a small-cap in the tech distribution sector, is gaining attention for its strategic moves and insider confidence. Recent insider purchases signal belief in its potential. The company recently partnered with CrowdStrike to enhance cybersecurity offerings across Australia and New Zealand, tapping into rising demand. Despite high debt levels from external borrowing, earnings are forecasted to grow by 9% annually. This growth potential positions Dicker Data as an intriguing option among undervalued stocks in Asia.
Take a closer look at Dicker Data's potential here in our valuation report.
Learn about Dicker Data's historical performance.
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Mader Group specializes in providing staffing and outsourcing services, with a focus on the mining and civil industries, and has a market cap of A$1.16 billion.
Operations: Mader Group's primary revenue stream is from Staffing & Outsourcing Services, generating A$811.54 million. The company's gross profit margin has recently shown a decline to 19.11%. Operating expenses stand at A$81.25 million, with non-operating expenses recorded at A$21.68 million as of the latest period ending December 31, 2024.
PE: 23.6x
Mader Group, a prominent player in its industry, demonstrates potential for growth with earnings expected to rise by 13.48% annually. The company's reliance on external borrowing presents a higher risk profile, yet insider confidence is evident as they purchased 83,500 shares worth A$498,495 recently. This purchase indicates trust in the company's future prospects despite the funding risks. Mader's position in Asia's market highlights its potential for investors seeking opportunities within this segment.
Unlock comprehensive insights into our analysis of Mader Group stock in this valuation report.
Understand Mader Group's track record by examining our Past report.
Simply Wall St Value Rating: ★★★★★★
Overview: Riverstone Holdings is a company primarily engaged in the manufacturing of gloves, with additional operations in other sectors, and has a market capitalization of S$1.07 billion.
Operations: The primary revenue stream is derived from gloves, which accounts for MYR 1.06 billion. The gross profit margin has shown fluctuations, with a notable increase to 65.01% in June 2021 before declining to 34.84% by March 2025. Operating expenses have varied over the periods, impacting net income margins as they range from approximately 13% to nearly 48%.
PE: 12.3x
Riverstone Holdings, a smaller company in Asia's market landscape, has shown insider confidence with recent share purchases. Despite a dip in net income to MYR 56.43 million from MYR 72.19 million year-on-year for Q1 2025, sales rose slightly to MYR 252.27 million. The company declared an increased final dividend of RM0.08 per share for FY2024, reflecting a commitment to shareholder returns amidst steady revenue growth forecasts of 4.49% annually.
Get an in-depth perspective on Riverstone Holdings' performance by reading our valuation report here.
Review our historical performance report to gain insights into Riverstone Holdings''s past performance.
Discover the full array of 67 Undervalued Asian Small Caps With Insider Buying right here.
Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.
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.
Companies discussed in this article include ASX:DDR ASX:MAD and SGX:AP4.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com

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Lululemon Athletica Stock (LULU) Plunges 23% as Tariff Pressures Eclipse Earnings Beat
Lululemon Athletica Stock (LULU) Plunges 23% as Tariff Pressures Eclipse Earnings Beat

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Lululemon Athletica Stock (LULU) Plunges 23% as Tariff Pressures Eclipse Earnings Beat

Lululemon Athletica (LULU) shares have declined more than 20% following the release of its quarterly earnings report last week, as investors react to tariff-driven margin concerns and slowing revenue growth. The Canadian athletic apparel brand is beginning to feel the weight of reality in the Trump era following the introduction of sweeping tariffs, while also facing headwinds in its core U.S. market due to tightening discretionary spending and intensifying competition. Confident Investing Starts Here: Several analysts have since lowered their price targets on the stock. Upon closer examination, several underlying trends raise concerns, prompting a cautiously neutral stance. Strong Performance Overshadowed by Margin Concerns in Q1 Despite posting a solid earnings beat for Q1 FY2025, Lululemon (LULU) experienced its steepest single-day drop in years after trimming its full-year EPS guidance by $0.37 per share. While gross margins improved to 58.3% thanks to lower production costs, operating margins slipped 110 basis points to 18.5%, highlighting mounting pressure on profitability. Additionally, comparable store sales grew just 1%, with a 2% decline in the Americas—a concerning trend for the brand's largest market. Notably, it's not just the top-line numbers that tell the story. Lululemon's inventory levels increased 23% versus planned high-teens growth. More and more of its products are collecting dust on its shelves. This could signal demand softness. Lululemon has struggled in the past with its women's apparel aligning with ever-changing trends. How Tariffs Impact the Canadian Apparel Company Though based in Vancouver, Canada, Lululemon is still exposed to the impact of President Trump's tariffs. 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Asia's divorce from the U.S. dollar is picking up pace
Asia's divorce from the U.S. dollar is picking up pace

CNBC

time2 hours ago

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Asia's divorce from the U.S. dollar is picking up pace

Asia's shift away from the U.S. dollar is ramping up. A mix of geopolitical uncertainties, monetary shifts, and currency hedging is prompting a meaningful move toward de-dollarization across the region. "Trump's erratic trade policy decisions and the dollar's sharp depreciation are probably encouraging a more rapid shift towards other currencies," said Francesco Pesole, FX strategist at ING. While the U.S. dollar continues to dominate global foreign exchange reserves, the share of the greenback has declined from more than 70% in 2000 to 57.8% in 2024. More recently, the greenback also saw a steep selloff this year, particularly in April, following uncertainty around U.S. policymaking. Since the start of the year, the dollar index has weakened by over 8%. While de-dollarization is not exactly a new phenomenon, the narrative has changed. Investors and officials are beginning to recognize that the dollar can and has been used as a leverage — if not overtly weaponized — in trade negotiations. This has led to a reevaluation of predominantly overweight U.S. dollar portfolios, said Mitul Kotecha, Barclays' head of FX and EM macro strategy in Asia. "Countries are looking at the fact that the dollar has been, and can be used as a sort of weapon on trade, direct sanctions, etc… That's been the real change, I think, in the last several months," he told CNBC. De-dollarization is growing as Asian economies in particular seek to reduce reliance on the greenback in hopes of using their own currencies as a medium of exchange to reduce FX risks, said Lin Li, head of global markets research for Asia at MUFG. Recently, the Association of Southeast Asian Nations, or ASEAN, committed to boosting the use of local currencies in trade and investment as part of its newly released Economic Community Strategic Plan for 2026 to 2030. The plan outlined efforts to reduce shocks associated with exchange rate fluctuations by promoting local currency settlements and strengthening regional payment connectivity. The move away from the dollar is gaining momentum in ASEAN, driven mainly by two forces: people and companies gradually converting their U.S. dollar savings back into local currencies, and large investors hedging foreign investments more actively, according to a recent note by Bank of America. "De-dollarization in ASEAN is likely to pick up pace, primarily via conversion of FX deposits accumulated since 2022," the bank's Asia fixed income and FX strategist Abhay Gupta said. Beyond ASEAN, the BRICS nations, which include India and China, have also actively developed and peddled their own payment system to bypass traditional systems like SWIFT and reduce dependency on the dollar. China has also been promoting bilateral trade settlements in the yuan. De-dollarization is an "ongoing, slow process," said Barclays' Kotecha. "[But] you can see it from central bank reserves, which have been gradually reducing the dollar share. You could see that from the share of the dollar in trade transactions," he told CNBC. He added that Asian economies such as Singapore, South Korea, Taiwan, Hong Kong and China own a large share of foreign assets, giving them the greatest potential to repatriate their foreign earnings or assets back to their home currencies. The sentiment is echoed by ITC Markets' Asian FX and rates analyst Andy Ji, who noted that economies most reliant on trade will experience more significant declines in U.S. dollar demand, singling out the ASEAN+3 nations, which include China, Japan, South Korea, alongside the 10 ASEAN member states. As of last November, ASEAN+3 has over 80% of trade invoices in U.S. dollars. De-dollarization is also occurring as Asian investors increasingly hedge their U.S. dollar exposures, according to Nomura. FX hedging is when an investor protects themselves from big swings in currency values by locking in exchange rates to avoid losses if the U.S. dollar weakens or strengthens unexpectedly. When investors hedge their exposure to the dollar, they sell the greenback and buy local or alternative currencies, which increases demand for and appreciates the latter against the dollar. "Some of the high performers that we're looking at will be places like Japanese yen, Korean won and Taiwan dollar," said Craig Chan, global head of FX strategy at Nomura Securities, who has observed a fair bulk of FX hedging coming from institutional investors like life insurance companies, pension funds and hedge funds. The hedge ratio for Japanese life insurers is about 44%, according to Nomura. Based on the financial holding company's estimates, that figure increased to around 48% in April and May. For Taiwan, Nomura estimates a hedge ratio of about 70%. The shift away from the dollar also begs the question of whether this is a temporary phase or a structural shift. For now, it may still just be cyclical, said Cedric Chehab, chief economist at BMI, who noted that it will only be structural if the U.S. employs sanctions more aggressively, making central banks wary of holding too many dollars. A second scenario would be if governments mandate their pension funds to invest a larger share of their assets domestically. While some countries are reducing their exposure and reliance on the dollar, it remains challenging to dethrone the greenback's position as the number one reserve currency, said industry watchers. "No other currency holds the same liquidity, depth of bond and credit market as the dollar, so it's more a matter of a reduction in its reserve appeal, rather than losing its throne," said Pescole. It's also important to distinguish between U.S. dollar weakness from de-dollarization, said Peter Kinsella, global head of Forex strategy at Union Bancaire Privée. "We've seen the U.S. dollar weaken before over various cycles and regimes – but it always maintained its reserve and hegemonic status," said Kinsella, who added that the greenback's use in trade and invoicing remains paramount in spite of the reduction in U.S. dollar exposure. As of April this year, more than half of global trade is still invoiced in dollar terms. "That said, the wider decline in the USD's use as a reserve asset appears set to continue, and I strongly expect that gold will be the main beneficiary from this," said the strategist.

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