According to the Ben Graham Net-net Screen, a Premium feature of GuruFocus, five net-net stocks in Asia as of Tuesday are Vantage Equities Inc. (PHS:V, Financial), Wuxi Sunlit Science and Technology Co. Ltd. (HKSE:01289, Financial), Victory New Materials Ltd. Co. (TPE:1340, Financial), Gamecard-Joyco Holdings Inc. (TSE:6249, Financial) and Kaneso Co. Ltd. (NGO:5979, Financial).
Asia stocks tumble as China GDP growth misses expectations
Asian stock markets slid to begin the week on the back of China's gross domestic product growth missing expectations: For the third quarter, China’s GDP increased just 4.9%, underperforming a Reuters estimate of 5.2% expansion. Additionally, industrial production increased 3.1% in September, underperforming the consensus estimate of 4.5%.
According to GuruFocus’ Global Market Valuation pages, several Asian markets like Singapore, China and Hong Kong have positive implied market returns based on Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio)’s concept of market valuations.
As such, investors may find opportunties in Asian stocks that are Ben Graham Net-Net candidates. The legendary value investor defined a net-net as a stock trading at most 66% of its net current asset value.
Vantage Equities
Shares of Vantage Equities (PHS:V, Financial) traded around 0.85 Philippine pesos (1.7 cents), approximately 35.71% of its net current asset value. The stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.79.
GuruFocus ranks the Filipino investment holding company’s financial strength 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a strong Altman Z-score of 4.77 and interest coverage and debt ratios that outperform more than 70% of global competitors.
Wuxi Sunlit Science and Technology
Shares of Wuxi Sunlit Science and Technology (HKSE:01289, Financial) traded around 1 Hong Kong dollar (13 cents), approximately 21.93% of its net current asset value. The stock is fairly valued based on Tuesday’s price-to-GF Value ratio of 0.98.
GuruFocus ranks the Chinese industrial product company’s financial strength 9 out of 10 on several positive investing signs, which include no long-term debt and an equity-to-asset ratio that outperforms more than 88% of global competitors.
Victory New Materials
Shares of Victory New Materials (TPE:1340, Financial) traded around 10.40 New Taiwanese dollars (37 cents), approximately 50% of its net current asset value.
GuruFocus ranks the Jinjiang, Fujian-based shoe sole manufacturing company’s financial strength 8 out of 10 on several positive investing signs, which include a high Altman Z-score of 7.75 and cash-to-debt ratios that outperform more than 90% of global competitors.
Gamecard-Joyco Holdings
Shares of Gamecard-Joyco Holdings (TSE:6249, Financial) traded around 1,245 yen ($10.93), approximately 58.52% of its net current asset value.
GuruFocus ranks the Japanese leisure company’s financial strength 8 out of 10 on several positive investing signs, which include a high Altman Z-score of 3.7 and interest coverage and debt ratios that are outperforming more than 85% of global competitors.
Kaneso
Shares of Kaneso (NGO:5979, Financial) traded around 4,045 yen ($35.39), approximately 58.26% of its net current asset value. The stock is fairly valued based on Tuesday’s price-to-GF Value ratio of 1.08.
GuruFocus ranks the Japanese steel company’s financial strength 8 out of 10 on several positive investing signs, which include a high Altman Z-score of 3.94 and equity-to-asset ratios that outperform more than 88% of global competitors.
