Bargain Hunt in Asia: Three Undervalued Stocks Poised for Growth in February 2026
As central banks signal caution and regional markets exhibit subdued volatility, a hunt for value is underway in Asia. For investors willing to dig beneath the surface, companies trading at a substantial discount to their estimated fair value present compelling opportunities. Our screening, based on discounted cash flow models, has identified a list of such candidates. Below, we delve into three standout picks from South Korea, New Zealand, and Singapore.
Click here to access the complete list of 255 undervalued Asian stocks identified by our screener.
Devsisters Corporation (KOSDAQ:A194480)
The Pitch: This South Korean mobile game developer, with a market capitalisation of ₩421.6 billion, is currently trading at ₩38,450—a staggering 48.6% below its estimated fair value of ₩74,806.55. While recent quarterly figures showed a dip, the core narrative is future growth: earnings are projected to surge at 43.7% per annum over the next three years, notably outpacing the broader Korean market forecast.
Context & Analysis: The gaming sector in Asia has faced headwinds from regulatory shifts and saturated markets, but Devsisters' deep discount appears to price in excessive pessimism. Its robust long-term growth forecast, if realised, could trigger a significant re-rating, making it a high-conviction, high-risk value play for investors betting on a sector recovery.
Air New Zealand Limited (NZSE:AIR)
The Pitch: The national carrier, valued at NZ$1.88 billion, trades at NZ$0.58—a 19.6% discount to its estimated fair value of NZ$0.72. Despite a modest forecast Return on Equity, the airline's earnings are expected to grow by 26.8% annually, far exceeding New Zealand's market growth rate. Operational metrics show resilience, with stable passenger numbers even in a challenging environment for aviation.
Context & Analysis: Airlines globally are navigating fluctuating fuel costs and uncertain travel demand. Air New Zealand's discount reflects these sector-wide fears. However, its dominant position in the Oceania region and a disciplined operational framework suggest it may be better positioned than its current valuation implies, offering a more conservative entry into the travel rebound thesis.
UltraGreen.ai Limited (SGX:ULG)
The Pitch: This Singapore-based manufacturer of fluorescence imaging surgical devices trades at US$1.68, which is 23.4% below its estimated fair value of US$2.19. The company anticipates blistering earnings growth of 23.7% per year. Recent regulatory approvals in Southeast Asian markets like the Philippines and Malaysia could be a catalyst, expanding the addressable market for its innovative medical technologies.
Context & Analysis: The medtech space is ripe for consolidation and growth, driven by aging populations and surgical innovation. UltraGreen.ai's undervaluation may stem from its smaller scale and the "wait-and-see" attitude towards its commercial expansion. The new regulatory green lights provide tangible near-term milestones that could bridge the gap between its current price and fair value estimate.
Investor Voices:
"Finally, some data-driven picks in a market full of noise. The discount on Devsisters is too large to ignore if their growth projections are even half-right." – David Chen, Portfolio Manager at Horizon Capital.
"Air New Zealand? In this climate? This feels like catching a falling knife. The entire airline sector is one fuel spike or geopolitical incident away from another downturn." – Maya Rodriguez, Independent Market Analyst.
"UltraGreen.ai is the most interesting story here. Regulatory expansion in ASEAN is a concrete step, not just a promise. The growth runway is clear." – Professor Arjun Mehta, Finance, National University of Singapore.
Disclosure: This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using an unbiased methodology. Our articles are not intended as financial advice. They do not constitute a recommendation to buy or sell any stock and do not consider your individual objectives or financial situation. We aim to deliver long-term fundamental analysis. Note that our analysis may not include the latest price-sensitive announcements or qualitative factors. Simply Wall St has no position in any stocks mentioned.
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