Undiscovered Gems In South Korea To Watch This September 2024

South Korea's market has been characterized by a notable current account surplus, despite a slight decrease from June to July 2024, driven by strong export growth and increased net assets. In this dynamic economic landscape, identifying promising small-cap stocks can be crucial for investors looking to capitalize on the country's robust trade performance and financial investments.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Cast Iron Pipe Ind	NA	1.97%	8.84%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Samyang	49.49%	6.68%	23.96%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Woori Technology Investment	NA	25.66%	-1.45%	★★★★★★
Namuga	14.47%	0.88%	38.25%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆

Click here to see the full list of 182 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

VT (KOSDAQ:A018290)

Simply Wall St Value Rating: ★★★★★★

Overview: VT Co., Ltd. produces and exports laminating machines and films worldwide, with a market cap of ₩1.19 billion.

Operations: VT generates revenue primarily from its Cosmetic segment (₩256.27 billion) and Entertainment segment (₩93.74 billion), with additional income from Laminating products (₩33.86 billion).

VT Co., Ltd. has demonstrated impressive growth, with earnings surging by 563.7% over the past year, far outpacing the Personal Products industry average of 30.2%. The company's debt to equity ratio has significantly improved from 71.2% to 22.4% over five years, and its interest payments are well covered by EBIT at a multiple of 175x. Recent results show second-quarter sales reaching KRW113 billion and net income at KRW15 billion, reflecting robust performance amidst high market volatility.

• Get an in-depth perspective on VT's performance by reading our health report here.

• Understand VT's track record by examining our Past report.

Hankook (KOSE:A000240)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hankook & Company Co., Ltd. manufactures and sells storage batteries with a market cap of ₩1.70 trillion.

Operations: Hankook & Company Co., Ltd. generates revenue primarily from the sale of storage batteries.

Hankook has shown impressive growth, with earnings surging 267% over the past year, outpacing the Auto Components industry’s 20.8%. The company reported net income of KRW 108.48 million for Q2 2024 compared to KRW 36.32 million a year ago and basic EPS from continuing operations increased to KRW 1,145 from KRW 383. Trading at a P/E ratio of just 5x against the market's average of 11.1x, it offers good value relative to its peers and industry.

• Click to explore a detailed breakdown of our findings in Hankook's health report.

• Learn about Hankook's historical performance.

Hyundai G.F. Holdings (KOSE:A005440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hyundai G.F. Holdings Co., Ltd. operates in the rental and investment sectors with a market cap of ₩779.52 billion.

Operations: Hyundai G.F. Holdings Co., Ltd. generates revenue primarily from rental and investment activities, contributing to its market cap of ₩779.52 billion.

Hyundai G.F. Holdings, a promising small-cap, has shown remarkable performance with earnings growing by 242291% over the past year. Trading at 43.2% below its estimated fair value, it has more cash than total debt and boasts high-quality non-cash earnings. The company's debt to equity ratio increased from 1.6 to 10.7 over five years, while revenue is forecasted to grow by 20.82% annually, indicating strong future prospects in the trade distributors industry.

• Dive into the specifics of Hyundai G.F. Holdings here with our thorough health report.

• Gain insights into Hyundai G.F. Holdings' historical performance by reviewing our past performance report.

Taking Advantage

• Reveal the 182 hidden gems among our KRX Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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