Discovering December 2024's Undiscovered Gems on the None Exchange

As global markets continue their record-breaking streak, investors are on the hunt for the next big thing. While major indices like the S&P 500 and Russell 2000 have reached new highs, there's still plenty of opportunity for growth in the smaller, lesser-known stocks. In December 2024, we explore the "None Exchange" and uncover some of its most promising, undiscovered gems.

The None Exchange, much like the Russell 2000, is a collection of small-cap stocks that offer considerable potential for growth. Despite their size, these companies have shown remarkable resilience, joining their larger peers in achieving significant milestones. To identify the most promising opportunities, we look for companies with strong fundamentals and the ability to weather market fluctuations.

One such company is Sichuan Huiyu Pharmaceutical (SHSE:688553). This smaller player in the pharmaceutical sector has demonstrated impressive earnings growth of 171.2% over the past year, outpacing the industry's -2.5%. Despite a notable one-off gain affecting its recent results, the company remains profitable, with a debt-to-equity ratio reduced from 24.8% to 17.4% over five years. With sales reaching CN¥851.84 million for nine months ending September 2024 and net income at CN¥227.35 million, Sichuan Huiyu Pharmaceutical seems well-positioned financially, with more cash than total debt and interest comfortably covered by profits.

Another promising company is Shenzhen Longtech Smart Control (SZSE:300916). This relatively small player in the electronics sector has shown impressive earnings growth of 43.9% over the past year, outpacing the industry's 1.8%. With a price-to-earnings ratio of 30.4x, lower than the broader CN market's 36.3x, Shenzhen Longtech Smart Control might be undervalued compared to its peers. Despite a rise in its debt-to-equity ratio from 0.5% to 3.1% over five years, Longtech remains profitable, with high-quality earnings and positive free cash flow of CNY 222 million as of September 2024. Recent financials reveal net income surged to CNY 104 million for nine months ended September compared to CNY 61 million last year, alongside basic earnings per share rising from CNY 0.42 to CNY 0.72 during this period.



In addition to these two companies, there are several other undiscovered gems on the None Exchange with strong fundamentals and promising growth potential. By conducting thorough research and analyzing the financial health of these companies, investors can uncover hidden gems that have the potential to deliver significant returns in the long run.



As we look ahead into 2025, investors should keep an eye on these promising small-cap stocks and consider adding them to their portfolios. By doing so, they can take advantage of the growth potential offered by these undiscovered gems on the None Exchange.

In conclusion, the None Exchange is home to many promising, undiscovered gems with strong fundamentals and growth potential. By conducting thorough research and analyzing the financial health of these companies, investors can uncover hidden gems that have the potential to deliver significant returns in the long run. As the global markets continue their record-breaking streak, these small-cap stocks offer considerable opportunity for growth, making them an attractive option for investors seeking to diversify their portfolios.