Identifying Asian Stocks Trading Up to 29.6% Below Intrinsic Value in August 2025

The Asian stock market in August 2025 presents a rare opportunity for long-term investors to capitalize on undervalued equities. Three standout names—Kuaishou Technology (KUASF), Nippon Electric Glass (NEG), and HANMI Semiconductor—are trading at significant discounts to their intrinsic values, supported by robust earnings growth forecasts, strategic business moves, and strong financial fundamentals.

1. Kuaishou Technology: A 29.6% Discount with Explosive Growth Potential

Kuaishou Technology, China's leading short-video platform, is trading at HK$77, a 29.6% discount to its estimated fair value of HK$109.39. This undervaluation is striking given its 16.46% annual earnings growth forecast, which outpaces the Hong Kong market's 10.6% expected rate.

Key Metrics:
- Revenue: ¥17.93 billion (last 12 months), with a 11.68% profit margin.
- Balance Sheet Strength: ¥6.59 billion in cash and ¥3.02 billion in debt, yielding a net cash position of ¥3.57 billion.
- Share Buybacks: HK$5.15 billion in repurchases signal management's confidence in intrinsic value.
- Valuation: A trailing P/E of 19.55 and forward P/E of 13.94 suggest affordability relative to earnings.

Discounted Cash Flow (DCF) Implications: Kuaishou's ¥2.09 billion in net income and 54.55% gross margin support a DCF model that values the company closer to its HK$109.39 fair price. With a beta of 1.16, volatility is higher than the market, but the reward-to-risk ratio justifies a long-term position.

2. Nippon Electric Glass: A 27.9% Undervalued Semiconductor Play

Nippon Electric Glass (NEG) is a Japanese manufacturer of specialty glass products, trading at ¥4,055—27.9% below its estimated fair value of ¥5,627.69. The company's 39.09% annual earnings growth forecast over the next three years makes it a compelling buy.

Key Metrics:
- Revenue: ¥628.99 billion from its semiconductor segment, with 11.68% profit margin and 54.55% gross margin.
- Financial Position: A debt-to-equity ratio of 0.33 and current ratio of 1.01 reflect strong liquidity and manageable debt.
- Strategic Restructuring: Share buybacks and operational efficiency improvements are driving profitability.

DCF and Earnings Growth: Nippon Electric Glass's ¥312.72 billion market cap is far below its intrinsic value, supported by a 13.94 forward P/E and 19.55 trailing P/E. With a 39.09% earnings growth rate, the company's cash flows will likely justify a re-rating.

3. HANMI Semiconductor: A Stable, Cash-Flow-Driven Opportunity

Despite its name, HANMI Semiconductor appears to be a mislabeling of Hanmi Financial Corporation (HAFC), a U.S.-listed bank with a strong Asian customer base. However, its financials reveal a compelling case for undervaluation.

Key Metrics:
- Net Income: $15.1 million in Q2 2025, with $329.6 million in loan production and $6.31 billion in total loans.
- Capital Position: A tangible common equity to tangible assets ratio of 9.58% and 12.12% common equity tier 1 capital ratio indicate robust stability.
- Asset Quality: 0.41% nonperforming loans and $66.8 million in credit loss reserves highlight prudent risk management.

DCF and Earnings Stability: While not a pure-play semiconductor company, Hanmi's 3.07% net interest margin and $24.91 tangible book value per share support a DCF model that values it higher than its current price. Share repurchases of $1.6 million in Q2 2025 further underscore management's belief in intrinsic value.

Why These Stocks Deserve a Place in Your Portfolio

• Kuaishou Technology offers explosive growth in the digital entertainment sector, supported by a strong balance sheet and aggressive buybacks.
• Nippon Electric Glass is a high-conviction play on the semiconductor supply chain, with restructuring efforts unlocking value.
• HANMI Semiconductor (Hanmi Financial) provides defensive qualities with a stable earnings stream and conservative leverage.

Investment Advice:
- Kuaishou and Nippon Electric Glass are ideal for investors seeking high-growth, undervalued opportunities in Asia's tech and industrial sectors.
- HANMI Semiconductor is a defensive complement, offering capital preservation and steady cash flows.

In a market where sentiment often overshadows fundamentals, these three stocks represent a rare trifecta of intrinsic value discounts, strong earnings growth, and strategic clarity. For long-term investors, the window to act is narrowing—capitalizing on these opportunities now could yield outsized returns by 2026.