Undiscovered Gems in South Korea to Watch This September 2024

Over the last 7 days, the South Korean market has dropped 1.0%, yet earnings are forecast to grow by 29% annually. In this environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
NOROO PAINT & COATINGS	13.99%	5.04%	7.98%	★★★★★★
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
Korea Cast Iron Pipe Ind	NA	1.97%	8.84%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Samyang	49.49%	6.68%	23.96%	★★★★★★
Kyung Dong Navien	22.40%	11.19%	18.84%	★★★★★★
Namuga	14.47%	0.88%	38.25%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆

Click here to see the full list of 192 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Soulbrain Holdings (KOSDAQ:A036830)

Simply Wall St Value Rating: ★★★★★☆

Overview: Soulbrain Holdings Co., Ltd. develops, manufactures, and supplies core materials for the semiconductor, display, and secondary battery cell industries in South Korea and internationally with a market cap of ₩1.14 trillion.

Operations: Soulbrain Holdings generates revenue primarily from the semiconductor, display, and secondary battery cell industries. The company has a market cap of ₩1.14 trillion.

Soulbrain Holdings, a promising player in South Korea's chemicals sector, has shown resilience with earnings growth of 2.4% over the past year, outpacing the industry average. Despite a volatile share price recently, it trades at 70.1% below its estimated fair value. The company's debt to equity ratio increased from 19.4% to 24.5% over five years but remains satisfactory at 3.3%. EBIT covers interest payments comfortably at 7.6x coverage, indicating solid financial health.

• Unlock comprehensive insights into our analysis of Soulbrain Holdings stock in this health report.

• Gain insights into Soulbrain Holdings' past trends and performance with our Past report.

KG Mobility (KOSE:A003620)

Simply Wall St Value Rating: ★★★★☆☆

Overview: KG Mobility Corp. manufactures and sells automobiles and parts in South Korea and internationally, with a market cap of ₩1.20 trillion.

Operations: KG Mobility Corp. generates revenue primarily from automobile manufacturing, amounting to ₩3.63 billion.

KG Mobility, a small cap player in South Korea's auto industry, has shown remarkable earnings growth of 1196.3% over the past year, significantly outpacing the industry's 23.4%. The company's net debt to equity ratio stands at a satisfactory 4.9%, down from 46.7% five years ago. Recent quarterly results reported sales of KRW 984.86 billion and net income of KRW 32.61 billion, with basic earnings per share rising to KRW 167 from KRW 96 last year.

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

• Assess KG Mobility's past performance with our detailed historical performance reports.

Boryung (KOSE:A003850)

Simply Wall St Value Rating: ★★★★★★

Overview: Boryung Corporation manufactures and sells pharmaceutical products in South Korea and internationally, with a market cap of ₩786.92 billion.

Operations: Boryung Corporation generates revenue primarily through the sale of pharmaceutical products both domestically and internationally. The company's market cap stands at ₩786.92 billion.

Boryung has shown impressive growth, with earnings increasing by 68.7% over the past year, significantly outpacing the Pharmaceuticals industry average of 21.9%. The company's net debt to equity ratio stands at a satisfactory 29.5%, having improved from 36.5% five years ago. Recent earnings reports highlight strong performance, with second-quarter sales reaching KRW 228.62 million and net income hitting KRW 23,643 million compared to KRW 11,318 million last year.

• Delve into the full analysis health report here for a deeper understanding of Boryung.

• Review our historical performance report to gain insights into Boryung's's past performance.

Next Steps

• Delve into our full catalog of 192 KRX Undiscovered Gems With Strong Fundamentals here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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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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