Three Undervalued Asian Stocks Poised for Growth in 2025
3min read Asia’s dynamic economies continue to offer fertile ground for investors seeking high-growth opportunities. Amidst rising consumer demand, technological innovation, and shifting global supply chains, three companies—Eastroc Beverage(Group), Zhejiang Tianyu Pharmaceutical, and True Corporation—stand out for their robust financial performance, undervalued stock positions, and clear pathways to sustained expansion. Let’s delve into their potential.
1. Eastroc Beverage(Group) (SHSE:605499): The Beverage Giant Leveraging China’s Consumer Boom
Eastroc Beverage(Group) has emerged as a standout performer in the food and beverage sector, driven by its strong grip on China’s growing consumer market. In Q1 2025, net income skyrocketed by 47.6% year-over-year to CN¥980.01 million, fueled by surging sales of beverages and pre-packaged foods.
The company’s valuation appears compelling, trading at a 22% discount to its estimated fair value of CN¥366.82. This discount reflects an undervaluation relative to its cash flow-generating capacity. Eastroc’s strategy to expand its beverage portfolio—targeting health-conscious and premium segments—aligns with China’s evolving consumer preferences. With a three-year net income growth forecast exceeding market expectations, this stock could be a long-term winner.
2. Zhejiang Tianyu Pharmaceutical (SZSE:300702): Riding the Wave of Global API Demand
Zhejiang Tianyu Pharmaceutical is another star performer, posting a 113% surge in net income to CN¥86.18 million in Q1 2025. The company’s success hinges on its role as a supplier of pharmaceutical intermediates and active pharmaceutical ingredients (APIs), which are critical for global drug production.
Trading at a 31% discount to its estimated fair value of CN¥32.27, Tianyu is poised to benefit from rising healthcare spending in emerging markets and the U.S.-China supply chain diversification trend. Its expansion into international markets, particularly in Southeast Asia and Europe, adds another layer of growth potential. This stock offers a rare combination of valuation upside and secular tailwinds.
3. True Corporation (SET:TRUE): Telecom Turnaround with Digital Ambition
While True Corporation reported a THB10.97 billion net loss in 2024, its turnaround plan is gaining momentum. The company is restructuring its leadership to prioritize core digital and enterprise segments, with a goal to achieve profitability within three years.
Trading at a 20.9% discount to its estimated fair value (THB15.3 below fair value), True’s valuation is attractive given its diversified revenue streams—mobile, broadband, and Pay TV—representing a market cap of THB418.08 billion. With anticipated annual earnings growth of over 75%, driven by digital transformation and telecom infrastructure upgrades, True could become a key player in Thailand’s evolving tech landscape.
Conclusion: A Trio of Value and Growth
These three stocks offer investors a blend of undervaluation and strong fundamentals:
- Eastroc Beverage(Group) benefits from China’s consumer boom and a 22% discount to fair value.
- Zhejiang Tianyu Pharmaceutical leverages global API demand with a 31% discount and triple-digit earnings growth.
- True Corporation, despite recent losses, trades at a 20.9% discount with a clear path to profitability through digital innovation.
All three companies are trading below their estimated fair values, suggesting significant upside potential. For investors willing to look beyond short-term noise, these stocks represent compelling entry points in Asia’s high-growth sectors. As consumer trends, healthcare demand, and digital transformation continue to shape the region’s economy, these companies are well-positioned to capitalize on the opportunities ahead.
