Three Asian Stocks Trading at a Discount: A Value Investor's Analysis

The search for value in Asian markets often leads to a simple arithmetic: a stock trading far below its estimated worth. A cash flow-based screener has flagged three specific names where the discount appears substantial. For the disciplined investor, these gaps between price and intrinsic value represent potential entry points, provided the underlying business remains sound.

First is Doosan Corporation, a Korean industrial conglomerate. The stock is currently priced at ₩811,000, while the screener estimates its fair value at ₩1,039,540.18. This implies a discount of roughly 22%. The company, with operations spanning power generation and construction machinery globally, is seen as returning to profitability with projected earnings growth ahead.

Next is East Buy Holding Limited, a Hong Kong-listed player in China's livestreaming e-commerce sector. The screener shows the stock trading at HK$21.76, well below an estimated fair value of HK$40.9. That's a discount of nearly 47%. The company's core business has seen margin pressure, but the model anticipates significant earnings growth over the coming years.

Finally, Visional Corporation from Japan presents one of the steepest discounts. The stock trades at ¥9,950, while the estimated fair value stands at ¥19,730.08. This represents a discount of about 50%. The company, involved in electronics and technology, is highlighted as a top pick from the screener's list.

These three names-Doosan, East Buy, and Visional-form the core of this analysis. Each trades at a significant discount to a cash flow-derived estimate of worth. The value investor's task now shifts from identification to understanding: what is driving these discounts, and does the business possess the durable competitive advantages needed to close the gap over time?

Assessing the Moat: Durability of Competitive Advantage

The discount is merely the starting point. For the value investor, the critical question is whether the business behind the price can compound cash flows over the long term. A wide moat-sustainable competitive advantages-is the engine that eventually closes the gap between market price and intrinsic value. Let's examine the durability of the moats for each of our three candidates.

Doosan Corporation presents a classic industrial conglomerate model, which is both its strength and its challenge. The company operates across power generation facilities, industrial facilities, construction machinery, engines, and construction sectors on a global scale. This diversification provides a certain buffer; a downturn in one region or sector can be offset by stability elsewhere. Its global reach, spanning Korea, the U.S., Asia, the Middle East, and Europe, suggests a broad customer base and established distribution channels. However, industrial businesses like this are often capital-intensive and cyclical. The moat here is less about a single proprietary product and more about scale, brand recognition in heavy machinery, and integrated service networks. The company's recent return to profitability and projected earnings growth are positive signs, but the moat's width depends on its ability to consistently generate returns on that substantial capital base, especially as it invests in AI-driven industries and clean energy solutions.

East Buy Holding Limited operates in a far more competitive and dynamic arena: China's livestreaming e-commerce. The model is inherently scalable and can generate significant revenue quickly, as evidenced by its online live commerce business generating billions in revenue. Yet, this very scalability is the enemy of a durable moat. The barriers to entry are low; any seller with a product and a platform can join the fray. The company's recent decline in profit margins from 3.8% to 0.1% starkly illustrates the intense price competition and high marketing costs that can erode profitability. For a value investor, the key question is whether East Buy can build a moat beyond just being a platform. Does it possess a unique proprietary technology, a deeply loyal customer base, or a cost advantage that its peers cannot easily replicate? The projected substantial annual earnings growth of over 20% for the next three years is promising, but it must be earned in a market where advantages can be fleeting.

Visional Corporation, by contrast, operates in a technology-driven niche focused on industrial automation and robotics. This is a more promising setup for a durable moat. The business model is built on specialized engineering and intellectual property, which can create higher switching costs for customers and a longer product lifecycle. The discount is steep, but the company's focus on advanced technology suggests a potential for higher margins and less direct price competition than in consumer e-commerce. That said, the evidence notes its smaller scale compared to peers. This is a critical point: a wide moat requires scale to be truly defensible. Visional may have the technological edge, but it must demonstrate it can grow large enough to leverage that advantage and fend off larger, better-capitalized rivals in the automation space.

The bottom line is that moats come in different shapes. Doosan's is a broad, diversified industrial moat; East Buy's is a narrow, competitive one; Visional's is a technology-based moat that needs to prove its scale. For the patient investor, the goal is to identify which of these, if any, can widen over time to justify the current discount.

The Value Investor's Checklist: Applying Classic Criteria

The classic value investing framework provides a clear lens for evaluating these discounted names. At its core are three criteria: a substantial margin of safety, a durable competitive advantage, and competent management. Let's apply them systematically.

First, the margin of safety is undeniably present. The screener's cash flow estimates reveal that all three stocks trade at steep discounts to their calculated intrinsic value. East Buy Holding shows a discount of 46.8%, while Visional Corporation trades at a discount of 49.6%. Even Doosan Corporation offers a margin of safety of 22%. For the patient investor, these gaps represent a buffer against error and uncertainty. The larger the discount, the greater the potential reward if the business fundamentals hold or improve.

Second, the durability of the competitive moat varies significantly. Doosan's global scale across power generation and construction machinery provides a tangible advantage in capital, brand, and integrated service networks. This is a moat built on physical assets and established operations. Visional's focus on industrial automation and robotics suggests a technology-based moat, where intellectual property and specialized engineering can create switching costs and higher margins. In contrast, East Buy operates in a fiercely competitive livestreaming e-commerce market where advantages are often fleeting. Its model is highly scalable but faces intense price competition, as evidenced by its sharp decline in profit margins. For long-term compounding, Doosan's industrial moat and Visional's tech focus appear more durable than East Buy's competitive model.

Finally, management competence is not directly assessed in the screener data. However, the value investor must assume that management will act in shareholders' interests. The key for these specific companies is consistent capital allocation and a relentless focus on generating cash flow. For Doosan, this means deploying capital efficiently in its AI and clean energy initiatives. For Visional, it means scaling its technology advantage profitably. For East Buy, it means navigating a crowded market to protect what little margin it has left. The projected earnings growth for all three-over 20% for East Buy, significant growth for Doosan, and 40% for a peer like Zijin Gold-depends on management's ability to execute.

The bottom line is that these stocks pass the margin of safety test with flying colors. The moat analysis, however, reveals a spectrum of durability. The value investor's task is to determine which business, given time and competent stewardship, is most likely to close its discount by widening its competitive advantage and compounding cash flows.

Catalysts and Risks: The Path to Realization

The substantial discounts we've identified are not guarantees of a quick reversal. For the value investor, the path to realization hinges on specific catalysts that can close the gap between price and intrinsic value, balanced against persistent risks that could prolong the wait.

For Japanese names like Visional Corporation, the catalysts are increasingly structural. The market is being driven by a powerful combination of domestic political support and a wave of shareholder reforms. As noted, Japanese equities soared to record highs in 2025 on this very momentum, with investor inflows tripling. This trend is expected to continue into 2026, supported by a new prime minister's fiscal program and a potential rise in the yen. For Visional, this creates a tailwind: a broader market re-rating of Japanese stocks can lift even fundamentally strong but overlooked companies. The catalyst is less about a single corporate event and more about the market's sentiment shift, which can compress the discount simply by raising the bar for what is considered "fair value."

For Chinese stocks like East Buy Holding, the path to value realization is clouded by a more complex mix of factors. On one hand, there is macroeconomic tailwind. Chinese equities have rallied, with the iShares MSCI China ETF up 32.8% so far this year, lifted by stimulus measures and AI enthusiasm. Yet this optimism faces a stark reality check. The domestic economy remains weak, with retail sales growing slowly and factory output slumping. This creates a fundamental tension: the market is pricing in growth, but the underlying economic engine is sputtering. The primary risk here is that geopolitical tensions, particularly over trade deals, could flare again and undermine the current rally. As one analyst noted, investors should stay wary of forthcoming trade deals as they risk reigniting tensions. For a company like East Buy, whose earnings are vulnerable to consumer spending, this creates a significant overhang.

The overarching risk for all three undervalued names is that market momentum continues to outpace fundamentals. The value investor's margin of safety is a buffer, but it is not a guarantee of timing. In a market environment where sentiment-driven flows dominate, a stock can remain deeply discounted for extended periods. This is the patience test. The catalysts for Visional are external and macroeconomic, while for East Buy, they are internal but threatened by external headwinds. The key for the disciplined investor is to separate the stock's intrinsic value from the market's short-term noise and focus on the long-term compounding potential of the business itself.