Discovering Three Undiscovered Gems in South Korea

In the last week, the South Korean market has been flat, with the Financials sector dropping 3.1%, and it has shown similar stagnation over the past year. Despite this, earnings are forecast to grow by 29% annually, making it an opportune time to explore stocks that stand out for their potential in a steady market environment.

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 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%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.38%	★★★★★☆

Click here to see the full list of 194 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 ₩1.10 billion.

Operations: VT Co., Ltd. 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 shown impressive growth, with earnings surging by 563.7% over the past year, far outpacing the Personal Products industry’s 30.2%. The company reported second-quarter sales of KRW 113.35 billion and net income of KRW 15.40 billion, up from KRW 74.69 billion and KRW 5.08 billion respectively a year ago. VT's debt to equity ratio improved significantly from 71.2% to 22.4% in five years, reflecting strong financial health and prudent management practices.

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

• Evaluate VT's historical performance by accessing our past performance report.

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 ₩1.16 trillion.

Operations: Soulbrain Holdings generates revenue primarily from the semiconductor, display, and secondary battery cell industries. The company's market cap stands at ₩1.16 trillion.

Soulbrain Holdings, a notable player in the South Korean chemicals sector, has seen its debt to equity ratio rise from 19.4% to 24.5% over the past five years. Despite this, it trades at nearly 70% below its estimated fair value and boasts high-quality earnings. The company's earnings growth of 2.4% in the last year outpaced the industry's -5.6%. Additionally, interest payments are well-covered by EBIT at a ratio of 7.6x, reflecting strong financial health amidst market volatility.

• Click here to discover the nuances of Soulbrain Holdings with our detailed analytical health report.

• Explore historical data to track Soulbrain Holdings' performance over time in our Past section.

People & Technology (KOSDAQ:A137400)

Simply Wall St Value Rating: ★★★★★★

Overview: People & Technology Inc. (KOSDAQ:A137400) specializes in providing coating, calendaring, slitting, automation, and other machinery services with a market cap of ₩1.33 trillion.

Operations: The primary revenue stream for People & Technology Inc. comes from its Machinery & Industrial Equipment segment, generating ₩792.60 billion.

People & Technology, a small-cap entity in South Korea, has shown impressive earnings growth of 50.9% over the past year, outpacing the Machinery industry’s 6.9%. The company is trading at 56.1% below its estimated fair value and has reduced its debt to equity ratio from 78% to a satisfactory 29.3% over five years. Additionally, it boasts a high level of non-cash earnings and well-covered interest payments with EBIT covering interest expenses by 30x.

• Unlock comprehensive insights into our analysis of People & Technology stock in this health report.

• Learn about People & Technology's historical performance.

Seize The Opportunity

• Investigate our full lineup of 194 KRX Undiscovered Gems With Strong Fundamentals right here.
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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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