Undervalued Asian Tech & Logistics: A Contrarian's Playbook for Asymmetric Returns

In a world fixated on FAANGs and AI unicorns, the overlooked corners of Asia hold gems: undervalued tech and logistics stocks with robust fundamentals, strategic tailwinds, and insider-backed conviction. Three names—Shengyi Electronics, J&T Global Express, and Shougang Fushan—stand out as contrarian bets in sectors dismissed as “old economy” or “overexposed to China.” Let's dissect why these stocks could deliver asymmetric returns.

1. Shengyi Electronics (PCB Growth + Insider Buying): A Tech Bargain in a 5G World

Shengyi Electronics, a leader in advanced PCB manufacturing, is a hidden beneficiary of the 5G and EV revolution. Its PCBs power everything from smartphones to electric vehicle batteries, yet its stock trades at a P/E of 12.5x, far below the industry average of 18.2x.

Why Buy Now?
- Insider Confidence: In Q1 2025, major insiders like Fiber Holdings GP, LLC and CEO Christopher French bought 227,037 shares and 16,500 shares, respectively. This marks 23 consecutive insider purchases without a single sale in six months.
- Strategic Edge: Shengyi's investment in high-frequency PCBs positions it to capture 5G infrastructure spending, which could hit $300B globally by 2030 (source: Dell'Oro).
- Undiscovered Institutional Support: While Vanguard and BlackRock reduced stakes, Southeastern Asset Management and Millennium Management added +909,818 shares and +146,221 shares, signaling a contrarian shift.

Risk/Reward: A 12.5x P/E leaves room for multiple expansion if EV/5G demand meets forecasts. Buy on dips below $10/share.

2. J&T Global Express (Logistics Recovery + Corporate Buybacks): Riding Asia's E-Commerce Surge

J&T, China's second-largest express delivery firm, operates in a sector misunderstood as “commodity”. Yet its 31% year-over-year parcel growth in Q1 2025 (to 6.6 billion parcels) suggests a rebound in e-commerce demand.

Why Buy Now?
- Insider Silence ≠ Weakness: While no recent executive purchases are reported, J&T's October 2024 buyback plan (10% of shares) signals confidence. No insiders have sold since lock-up expiration, a positive sign.
- Tailwinds: Asia's e-commerce market is projected to hit $4.5 trillion by 2025 (eMarketer), with J&T capturing 20% of China's domestic parcels. Its cost structure is improving: operating margins rose to 5.2% in 2024, up from -1.3% in 2022.
- Valuation: At 8.7x forward P/E, J&T trades below peers like ZTO Express (12.3x) despite faster growth.

Risk/Reward: A corporate buyback and low valuation make this a “wait for weakness” play. Avoid chasing; aim for dips below $15/share.

3. Shougang Fushan (Mining + Insider Buying): A Dividend Machine in a Steel Rebound

Shougang Fushan, an iron ore and steel producer, offers a 11.2% dividend yield and insider buying amid a sector in flux.

Why Buy Now?
- Executive Backing: Key insiders like Chairman Ding Rucai and Executive Director Chen Zhaoqiang bought 375,000+ shares in April 2025 at HK$0.29–0.31, signaling confidence in undervaluation.
- Strategic Moves: Expansion into Southeast Asia's iron ore markets (a low-cost, high-demand region) could offset China's slowing steel demand.
- Valuation: At 11.2x P/E (vs. industry average 14.5x) and HK$0.30/share, the stock is a contrarian's dream.

Risk/Reward: Risks include falling steel prices and dilution from equity issuances. However, the dividend yield and insider support make this a “set-and-forget” income play.

Conclusion: Contrarian Investing at Its Best

These stocks thrive in sectors shunned by macro-focused investors: tech (PCBs), logistics (e-commerce), and mining (steel). Yet each has insider-backed fundamentals, sector tailwinds, and valuation discounts that defy their risks.

• Buy Shengyi for 5G/EV growth and insider conviction.
• Hold J&T for logistics recovery and a low P/E.
• Own Shougang Fushan for dividends and mining expansion.

The market's myopia is your advantage. These names offer asymmetric upside—wait for dips, then act.

Disclaimer: Past performance ≠ future results. Consult a financial advisor before investing.