Undiscovered Gems In South Korea To Watch This September 2024

The South Korean stock market has seen a positive trend recently, buoyed by a series of gains that have pushed the KOSPI index above the 2,580-point mark. This optimism is reflected in broader global markets as well, with significant rallies in European and U.S. indices driven by favorable economic indicators and interest rate decisions. In this environment of growing confidence, identifying promising small-cap stocks can be particularly rewarding for investors. Here are three undiscovered gems in South Korea to watch this September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Samyang	49.49%	6.68%	23.96%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Woori Technology Investment	NA	25.66%	-1.45%	★★★★★★
Kyung Dong Navien	22.40%	11.19%	18.84%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆

Click here to see the full list of 190 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Woori Technology (KOSDAQ:A032820)

Simply Wall St Value Rating: ★★★★★☆

Overview: Woori Technology, Inc. manufactures and sells switchboard and electric control panels, with a market capitalization of ₩416.21 billion.

Operations: Woori Technology generates revenue primarily from the manufacture sale sector (₩59.99 billion), supplemented by rental income (₩3.31 billion), service sales (₩2.65 billion), and product sales (₩2.40 billion). The company’s diverse revenue streams highlight its multifaceted business model within the electric control panel industry.

Woori Technology, a small cap firm in South Korea, has seen its debt to equity ratio improve from 141.9% to 59.8% over the past five years. Despite this progress, its net debt to equity remains high at 50.6%. The company’s earnings surged by 136.3% last year, outpacing the Electronic industry’s -13.4%. Recent private placements raised KRW 10 billion through convertible bonds set to mature in August 2029, reflecting investor confidence and potential for future growth.

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

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

Cheryong ElectricLtd (KOSDAQ:A033100)

Simply Wall St Value Rating: ★★★★★★

Overview: Cheryong Electric Co., Ltd. manufactures and sells power electric equipment in South Korea, with a market cap of ₩963.74 billion.

Operations: Cheryong Electric Co., Ltd. generates revenue primarily from the sale of power electric equipment in South Korea, with a market cap of ₩963.74 billion.

Cheryong Electric Ltd. has demonstrated impressive growth, with earnings surging by 134% over the past year, significantly outpacing the Electrical industry's 25.5%. The company is debt-free, a marked improvement from five years ago when its debt to equity ratio was 2.3%. Despite a highly volatile share price in recent months, Cheryong trades at 79.7% below its estimated fair value and reports high-quality earnings.

• Click here and access our complete health analysis report to understand the dynamics of Cheryong ElectricLtd.

• Gain insights into Cheryong ElectricLtd's historical performance by reviewing our past performance report.

Iljin ElectricLtd (KOSE:A103590)

Simply Wall St Value Rating: ★★★★★★

Overview: Iljin Electric Co., Ltd operates as a heavy electric machinery company in South Korea and internationally, with a market cap of ₩1.01 billion.

Operations: Iljin Electric Co., Ltd generates revenue primarily from its Wire segment (₩1.17 trillion) and Power System segment (₩329.01 billion). The company's consolidated revenue is impacted by adjustments amounting to -₩81.32 billion.

Iljin Electric Ltd. has shown impressive earnings growth of 55.6% over the past year, significantly outpacing the Electrical industry’s 25.5%. The company repurchased shares in 2024, indicating confidence in its prospects. Its net debt to equity ratio stands at a satisfactory 10.4%, reflecting prudent financial management. Trading at 83.8% below its estimated fair value, Iljin appears undervalued with high-quality earnings and a forecasted annual growth rate of 34.63%.

• Navigate through the intricacies of Iljin ElectricLtd with our comprehensive health report here.

• Learn about Iljin ElectricLtd's historical performance.

Turning Ideas Into Actions

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Want To Explore Some Alternatives?

• 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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