As global markets react to the Federal Reserve’s recent rate cut and ongoing trade developments between major economies, investors are keenly observing shifts in market dynamics. In this context, penny stocks—often representing smaller or newer companies—remain an intriguing area for potential growth opportunities. Despite their somewhat outdated label, these stocks can offer surprising value when backed by strong financial health. In this article, we highlight three penny stocks that could present compelling opportunities with notable balance sheet resilience.
Name
Share Price
Market Cap
Financial Health Rating
Lever Style (SEHK:1346)
HK$1.52
HK$964.89M
★★★★★★
IVE Group (ASX:IGL)
A$2.69
A$417.04M
★★★★★☆
HSS Engineers Berhad (KLSE:HSSEB)
MYR0.635
MYR322.88M
★★★★★☆
TK Group (Holdings) (SEHK:2283)
HK$2.41
HK$2.06B
★★★★★★
Angler Gaming (NGM:ANGL)
SEK3.60
SEK269.95M
★★★★★★
Deleum Berhad (KLSE:DELEUM)
MYR1.39
MYR558.16M
★★★★★★
Yangzijiang Shipbuilding (Holdings) (SGX:BS6)
SGD3.27
SGD12.87B
★★★★★☆
Integrated Diagnostics Holdings (LSE:IDHC)
$0.5725
$332.81M
★★★★★☆
Begbies Traynor Group (AIM:BEG)
£1.20
£191.04M
★★★★★★
Deceuninck (ENXTBR:DECB)
€2.055
€284.04M
★★★★★★
Click here to see the full list of 3,725 stocks from our Global Penny Stocks screener.
We’re going to check out a few of the best picks from our screener tool.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Phoenix Media Investment (Holdings) Limited is an investment holding company that offers satellite television broadcasting services in China and internationally, with a market cap of approximately HK$888.87 million.
Operations: The company’s revenue is primarily derived from its Internet Media segment at HK$796.03 million, followed by Television Broadcasting – Primary Channels at HK$540.06 million, Outdoor Media generating HK$357.78 million, and Television Broadcasting – Others contributing HK$315.21 million; Real Estate adds HK$68.37 million to the total revenue mix.
Market Cap: HK$888.87M
Phoenix Media Investment (Holdings) Limited, while unprofitable, demonstrates financial resilience with HK$3.1 billion in short-term assets covering both short and long-term liabilities. The company has reduced its debt to equity ratio from 13% to 4.6% over five years and maintains more cash than total debt, ensuring a cash runway exceeding three years if current free cash flow remains stable. Despite reporting a net loss of HK$205.26 million for the first half of 2025, the company has consistently reduced losses by 25.6% annually over five years, supported by an experienced management team with an average tenure of 4.6 years.
Story Continues
SEHK:2008 Financial Position Analysis as at Sep 2025
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Shun Tak Holdings Limited is an investment holding company involved in property, transportation, hospitality and leisure, and investment sectors across Hong Kong, Macau, the People’s Republic of China, Singapore, and internationally with a market cap of HK$2.50 billion.
Operations: The company’s revenue is primarily derived from its property segment at HK$3.04 billion, followed by hospitality at HK$667.13 million and investment activities contributing HK$146.85 million.
Market Cap: HK$2.5B
Shun Tak Holdings Limited, despite being unprofitable with a negative return on equity, shows financial stability through its HK$18.7 billion in short-term assets covering both short and long-term liabilities. The company has managed to reduce its debt to equity ratio from 49.4% to 45.6% over five years, and it is trading at a significant discount compared to estimated fair value. Recent developments include an amendment agreement with MGM China Holdings due to increased demand for offsite gaming accommodation, potentially boosting revenue from hospitality services in the near term. The seasoned management team adds further credibility amidst ongoing challenges.
SEHK:242 Financial Position Analysis as at Sep 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Hong Kong Robotics Group Holding Limited is an investment holding company that trades in electronic appliances across the People’s Republic of China, Singapore, and Hong Kong, with a market cap of HK$2.91 billion.
Operations: The company’s revenue is primarily derived from building construction contracting (HK$72.24 million), customised technical support (HK$11.11 million), geothermal energy (HK$11.43 million), centralised heating (HK$9.95 million), property investment (HK$6.28 million), and money lending services (HK$5.08 million).
Market Cap: HK$2.91B
Hong Kong Robotics Group Holding Limited, while unprofitable with a negative return on equity of -22.63%, maintains financial stability as its HK$978.1 million in short-term assets exceed both its short and long-term liabilities. Despite the company’s debt to equity ratio increasing from 25.5% to 48.3% over five years, it trades at a substantial discount relative to estimated fair value and has sufficient cash runway for over three years due to positive free cash flow growth. Recent inclusion in the S&P Global BMI Index and leadership changes may influence future strategic directions amidst ongoing operational challenges.
SEHK:370 Financial Position Analysis as at Sep 2025
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:2008 SEHK:242 and SEHK:370.
This article was originally published by Simply Wall St.
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