Unveiling Hidden Gems: Top 10 Undiscovered Stocks in Asia with Strong Fundamentals

Asian indices are buoyed by strong domestic liquidity and technological advancements, making it key for savvy investors to identify stocks with robust fundamentals and growth potential. Three undiscovered gems in Asia are Natural Food International Holding, Aerospace Hi-Tech Holding Group, and YAPP Automotive Systems, which have shown strong revenue growth, earnings growth, and high health ratings.

Manulife Financial Corporation (TSX:MFC; NYSE:MFC), a leading international financial services group, has been making significant strides in the life insurance industry. With a market capitalization of $52.94 billion, the company maintains an impressive financial health score of 3.3 (GREAT) Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1]. Recent analyst reports highlight Manulife’s strong performance, particularly in its Asia business, and its potential for continued growth despite market challenges.

Manulife’s Asia business has emerged as a key driver of the company’s growth and profitability. The company’s Asia operations rank as the third-largest in the pan-Asia region, outperforming major competitors such as AIA and Prudential UK on several key performance indicators. This is particularly significant given that Asia currently represents 46% of Manulife’s core earnings, with projections indicating this could increase to 50% by 2027 Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

The company’s performance in Asia has been impressive across multiple metrics. Core earnings growth in Asia outpaced competitors, with an 18% increase from 2022 to 2024. Annual Premium Equivalent (APE) showed a compound annual growth rate (CAGR) of 11% from 2019 to 2024, with a notable 41% year-over-year growth in the first half of 2025. New Business Value (NBV) demonstrated a CAGR of 9% from 2019 to 2024, excluding Japan, and a 36% year-over-year growth from the first half of 2024 to the first half of 2025 Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

Manulife’s overall financial performance has been strong, with analysts projecting continued growth in the coming years. The company’s core earnings per share (EPS) are expected to increase from $3.88 in fiscal year 2024 to $4.01 in 2025 and $4.45 in 2026. This trajectory aligns with Manulife’s medium-term core EPS growth target of 10-12% Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

The life insurance industry is undergoing significant transformation, which presents both opportunities and challenges for companies like Manulife. Partnerships between life insurers and alternative asset managers are becoming increasingly common, and the utilization of Bermuda entities is gaining traction as a means to support growth and improve free cash flow generation for insurers. Mergers and acquisitions (M&A) and reinsurance activities are on the rise, potentially leading to industry consolidation and improved economics for insurers Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

Manulife has implemented several strategic initiatives to capitalize on these trends. The company is focusing on high-growth and high-return businesses, optimizing its operations for better margins and profitability, and announcing a substantial remittances target for the period of 2024-2027. Additionally, Manulife’s share repurchase program could contribute to improving ROE and supporting EPS growth Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

However, market volatility remains a significant concern. Fluctuations in equity markets and interest rates can affect the value of Manulife’s investment portfolio and the performance of its wealth management products, potentially leading to earnings pressures and impacting the company’s ability to meet its projected EPS growth targets Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

Slower global economic growth also presents challenges. In a sluggish economic environment, consumers may have less disposable income to allocate towards insurance and investment products, potentially impacting Manulife’s sales and revenue growth across its various markets. Furthermore, a slowdown in economic activity could lead to increased unemployment rates, affecting the company’s persistency rates and long-term profitability Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

Despite these challenges, Manulife’s strong performance in Asia is poised to be a significant driver of the company’s overall growth. With Asia already contributing 46% of Manulife’s core earnings and projected to reach 50% by 2027, the region’s continued expansion will likely have a substantial positive impact on the company’s financial results Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

Manulife’s bold ROE target of over 18% is viewed by analysts as achievable, given the company’s strategic focus and recent performance. The company’s emphasis on high-growth and high-return businesses, efficiency and scale initiatives, and share buyback program are expected to drive profitability improvements and contribute to higher returns Manulife Financial’s SWOT analysis: stock poised for growth amid industry shifts^[1].

In conclusion, Manulife Financial Corporation presents a compelling investment opportunity with its strong performance in Asia, robust financial position, and strategic initiatives. However, investors should remain cognizant of the risks associated with market volatility and slower global economic growth. As Asian indices continue to benefit from strong domestic liquidity and technological advancements, Manulife’s growth potential in the region makes it a key player to watch.