As global markets kick off the year with a rally, driven by investors looking beyond geopolitical tensions, small-cap and value shares have outperformed, signaling potential opportunities in overlooked sectors. The term ‘penny stocks’ might feel like a relic of past market eras, but the potential they represent is as real as ever. Typically referring to smaller or relatively new companies, these stocks can provide a mix of affordability and growth potential when paired with strong financials.
Name
Share Price
Market Cap
Financial Health Rating
Lever Style (SEHK:1346)
HK$1.41
HK$884.48M
★★★★★★
Asia Medical and Agricultural Laboratory and Research Center (SET:AMARC)
Let’s review some notable picks from our screened stocks.
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Pizu Group Holdings Limited is an investment holding company involved in the manufacturing, trading, and sales of civil explosives in the People’s Republic of China and Tajikistan, with a market cap of HK$3.56 billion.
Operations: The company’s revenue is derived from its Mining Operation segment, which generated CN¥965.07 million, and its Explosives Trading and Blasting Services segment, contributing CN¥619.40 million.
Market Cap: HK$3.56B
Pizu Group Holdings Limited recently reported a net income increase to CN¥107.62 million for the half year ended September 30, 2025, despite a decline in sales to CN¥748.16 million from the previous year. The company maintains high-quality earnings and improved profit margins at 11.8%, up from last year’s 7.5%. While its return on equity is low at 13.2%, Pizu’s debt level is satisfactory with a net debt to equity ratio of 19.5% and strong interest coverage by profits. The management team and board are experienced, contributing to stable operations amidst fluctuating earnings over five years.
SEHK:9893 Debt to Equity History and Analysis as at Jan 2026
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Jiumaojiu International Holdings Limited operates Chinese cuisine restaurant brands across several countries including China, Singapore, Canada, Malaysia, the United States, Thailand, and Indonesia with a market cap of approximately HK$2.80 billion.
Operations: The company’s revenue is primarily generated from its restaurant brands, with Tai Er contributing CN¥4.11 billion, Jiu Mao Jiu adding CN¥480.30 million, and Song Hot Pot accounting for CN¥880.10 million.
Market Cap: HK$2.8B
Jiumaojiu International Holdings faces challenges with declining net profit margins, currently at 0.8%, down from 4.9% last year, and negative earnings growth of -85.4%. Despite these setbacks, the company maintains a strong financial position with more cash than total debt and short-term assets exceeding liabilities. Its debt is well-covered by operating cash flow, and interest payments are adequately managed with EBIT coverage of 4.3 times. While recent results were impacted by a CN¥140.5 million one-off loss, the management team is experienced, supporting potential recovery as earnings are forecasted to grow annually by 33.8%.
SEHK:9922 Financial Position Analysis as at Jan 2026
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Penguin International Limited is an investment holding company that designs, builds, owns, and operates high-speed aluminum crafts across various regions including Singapore, East Asia, Africa, Europe, the Middle East, and Southeast Asia with a market capitalization of SGD319.25 million.
Operations: The company’s revenue is primarily derived from its Shipbuilding, Ship Repairs and Maintenance segment, which generates SGD306.47 million, complemented by its Vessel Chartering segment with SGD52.26 million.
Market Cap: SGD319.25M
Penguin International Limited shows promising financial health with short-term assets (SGD192.7M) exceeding both short-term (SGD120.8M) and long-term liabilities (SGD52.8M). The company’s earnings grew significantly by 130.4% over the past year, surpassing its five-year average growth of 23.6%, and outperforming the industry average of 6.8%. Despite a low Return on Equity at 17.1%, its Price-To-Earnings ratio is favorable at 8x compared to the market’s 15.3x, suggesting potential undervaluation for investors seeking value in penny stocks with solid fundamentals and experienced management teams averaging a tenure of 16 years.
SGX:BTM Debt to Equity History and Analysis as at Jan 2026
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SEHK:9893 SEHK:9922 and SGX:BTM.
This article was originally published by Simply Wall St.
