Insider Bets in Asia's Small-Cap Arena: Three Undervalued Stocks to Watch in February 2026
HONG KONG/SINGAPORE – February 2026 – While macroeconomic headwinds and regional tensions continue to cast a shadow over Asian equities, a specific segment of the market is drawing scrutiny from value hunters: small-cap stocks witnessing notable insider buying. This activity, often viewed as a vote of confidence from those who know the company best, is highlighting potential opportunities where the market's pessimistic narrative may have overshot.
"In volatile times, insider transactions can be a powerful signal, cutting through the noise," says Arjun Mehta, a portfolio manager at Horizon Capital in Singapore. "It doesn't guarantee success, but when executives invest their own capital at current levels, it demands a second look, especially in the overlooked small-cap space."
Our analysis, leveraging a proprietary screener, has identified several such names. Below, we delve into three compelling cases from the financial, mining, and agricultural sectors.
Bell Financial Group (ASX:BFG): A Bet on Financial Services Resilience
Simply Wall St Value Rating: ★★★☆☆☆
With a market cap of A$940 million, Bell Financial Group provides broking and technology platform services across the region. Despite a compression in its net income margin from peaks seen earlier in the decade, a significant insider purchase has turned heads. In late January 2026, Director Daniel Droga invested A$1.85 million to acquire 1.6 million shares.
This move comes as analysts project earnings growth exceeding 30% per annum. The company's funding model, reliant on external borrowing rather than stable customer deposits, remains a point of caution for some. However, the insider's substantial buy-in suggests a belief that the growth trajectory outweighs the financing risks.
Resolute Mining (ASX:RSG): Gold Miner Eyes a Turnaround
Simply Wall St Value Rating: ★★★☆☆☆
This AUD 1.17 billion gold producer, with key assets in Mali and Senegal, faced operational headwinds in 2025, reporting lower production and sales. Yet, a series of insider share purchases from late 2025 into early 2026 hints at internal optimism for a rebound.
The focus is now on development projects in Côte d'Ivoire (Doropo, La Debo) and exploration in Senegal. Management guides 2026 production to 250,000-275,000 ounces. While the high all-in sustaining cost (AISC) guidance of $2,000-$2,200/oz reflects ongoing challenges, the insider accumulation indicates a bet on successful execution and potential resource expansion to improve margins.
China XLX Fertiliser (SEHK:1866): Fertilizer Play with Growth Momentum
Simply Wall St Value Rating: ★★★☆☆☆
A leading producer of urea and compound fertilizers, China XLX Fertiliser (market cap: CN¥6.5bn) has seen consistent insider buying over the past year. This aligns with a robust earnings growth forecast of 27% per year. The recent appointment of Ms. Kam Mei Ha Wendy as Joint Company Secretary strengthens its governance profile.
Similar to Bell Financial, its dependence on external borrowing is a noted risk factor. However, the sustained insider confidence, coupled with its essential role in the agricultural supply chain, paints a picture of a company positioned to navigate industry cycles.
Investor Perspectives:
Priya Sharma, Independent Analyst in Mumbai: "These are classic 'GARP' (Growth at a Reasonable Price) situations with a catalyst. The insider activity isn't happening in a vacuum; it's paired with solid fundamental growth projections, particularly for BFG and 1866. That combination is worth monitoring."
David Chen, Hedge Fund Manager, Hong Kong: "This is pure noise. Insiders buy for a hundred reasons—tax planning, bonus allocation, window dressing. A single purchase means nothing against structural issues like RSG's high costs or BFG's risky balance sheet. Retail investors chasing these signals are playing with fire."
Michael Roberts, Retail Investor Forum Moderator: "It gives me a bit more confidence, honestly. Especially with the fertilizer company. Food security isn't going away, and if the bosses are buying, they probably see strong demand ahead. I'm adding 1866 to my watchlist."
Disclaimer: This article presents a thematic analysis based on historical data, analyst forecasts, and publicly disclosed insider transactions. It is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an consideration of your personal investment objectives or financial situation. Investors should conduct their own research or consult a financial advisor. Simply Wall St holds no position in the mentioned securities.
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