A Stock With Less Than A 580,000 Float That Trades At A 3 P/E

Today was just another regular day in the market, where a couple of Asian-based small caps took off as Star Fashion Culture Holdings Limited (STFS) and Powell Max Limited (PMAX) both nearly doubled. Phoenix Asia Holdings Limited (PHOE) took off yesterday and Julong Holding Limited (JLHL) did the same a day before. While FOMO buyers in these stocks now are going to take a risk of them falling, smart value traders have identified an Asian-based listing that can explode like these others have already done. What makes Ten-League International Holdings Limited (TLIH) stand out from the rest is that its fundamentals support a much higher price. With it moving up on much lower volume since it released its annual report last week, it is primed for a massive breakout at any time. If you like our picks you can follow this blog by clicking the follow button on the top of the left hand panel. We have 1039 followers on here as well as 131 followers on our Canadian blog. You can also follow us on X @StockTradePicks which has over 5,000 followers.

TLIH released its financials last week. Revenue growth was 30% and net income increased 197%. The stock reacted positively with a 50% increase, but we think the increase was muted because there was some confusion over the numbers. The company reported $0.15 in EPS for 2025, but that was before the 1-for-10 reverse split that took place on May 1. Split-adjusted EPS is $1.57. That means TLIH trades at less than a 3 P/E, an impossibly low valuation for a company that is growing 30% in a year and isn't diluting. 

The market is slowly beginning to recognize the opportunity. While it traded nearly 20 million shares on May 1, the volume has declined to where it traded only 238,000 shares today. This lower volume has resulted in a steady move up, with three days of gains moving the stock from $3.66 to $4.12. The high frequency trading bots have left the stock and value investors who recognize the opportunity are buying in. Three of the last four days have witnessed a high of around $4.60, so that is a key level to watch for a breakout. Assuming it does, the stock could move quick because the financials justify a much higher price and the thin float of less than 580,000 shares makes a PHOE-like move on 200,000 shares possible. 

Disclosure: We are long TLIH