Chow Sang Sang Holdings International (00116.HK) saw its stock soar 5.22% during intraday trading on Monday, outperforming the broader market. The Hong Kong-based jewelry retailer and manufacturer, with a market capitalization of approximately HK$9 billion, has caught the attention of investors and analysts alike.
The stock's surge comes on the heels of a recent analysis highlighting Chow Sang Sang as one of Asia's undiscovered gems with strong fundamentals. The company has demonstrated impressive earnings growth of 61% over the past year, significantly outpacing the industry average of 5.8%. Furthermore, Chow Sang Sang reported a substantial increase in net income for the first half of 2025, rising to HK$901.74 million from HK$525.99 million in the previous year.
Analysts also point out that Chow Sang Sang appears undervalued, trading at nearly half its estimated fair value. This, combined with the company's high-quality earnings and satisfactory debt-to-equity ratio of 29.2%, has likely contributed to investor optimism. However, it's worth noting that some forecasts suggest potential future challenges with declining earnings expectations, which investors will need to monitor closely in the coming months.