Stock Analysis

Discovering Undiscovered Gems in South Korea This September 2024

KOSE:A000240
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Over the last 7 days, the South Korean market has dropped 5.7%, contributing to a 3.9% decline over the past year, though earnings are forecast to grow by 29% annually. In these conditions, identifying stocks with strong growth potential and solid fundamentals becomes crucial for investors looking to uncover hidden opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
NOROO PAINT & COATINGS13.99%5.04%7.74%★★★★★★
Miwon Chemicals0.08%11.70%14.38%★★★★★★
Korea RatingsNA1.13%0.54%★★★★★★
Woori Technology InvestmentNA25.66%-1.45%★★★★★★
Namuga14.47%0.88%38.25%★★★★★★
Synergy Innovation12.39%12.87%28.82%★★★★★★
ASIA Holdings34.98%8.43%16.17%★★★★★☆
Oriental Precision & EngineeringLtd54.53%3.14%0.80%★★★★★☆
Daewon Cable30.50%8.72%60.28%★★★★★☆
FnGuide36.10%8.92%10.27%★★★★☆☆

Click here to see the full list of 183 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 ₩1.20 trillion.

Operations: VT Co., Ltd. generates revenue primarily from its Cosmetic segment (₩256.27 billion), followed by Entertainment (₩93.74 billion) and Laminating (₩33.86 billion).

VT Co., Ltd. has shown remarkable growth, with earnings skyrocketing by 563.7% over the past year, far outpacing the Personal Products industry’s 30.2%. The debt to equity ratio has impressively reduced from 71.2% to 22.4% in five years, indicating better financial health. Recent earnings reports highlight a net income of ₩15,400 million for Q2 2024 compared to ₩5,086 million a year ago and basic EPS rising from ₩154 to ₩481 over the same period.

KOSDAQ:A018290 Earnings and Revenue Growth as at Sep 2024
KOSDAQ:A018290 Earnings and Revenue Growth as at Sep 2024

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. The company has a market cap of ₩1.70 trillion.

Hankook's earnings surged by 267% over the past year, significantly outpacing the Auto Components industry’s 20.8% growth. Trading at a price-to-earnings ratio of 4.9x, it is well below the KR market average of 11x, indicating good value. The company’s net debt to equity ratio stands at a satisfactory 1.4%, while EBIT covers interest payments by an impressive 40x margin. Recent results show second-quarter sales at KRW 4,810 million and net income at KRW 108,476 million compared to last year's figures of KRW 4,433 million and KRW 36,322 million respectively.

KOSE:A000240 Debt to Equity as at Sep 2024
KOSE:A000240 Debt to Equity as at Sep 2024

Kyung Dong Navien (KOSE:A009450)

Simply Wall St Value Rating: ★★★★★★

Overview: Kyung Dong Navien Co., Ltd. manufactures and sells machinery and heat combustion equipment in South Korea, with a market cap of approximately ₩979.91 billion.

Operations: The company generates revenue primarily from the air conditioning manufacturing and sale segment, which brought in ₩1.29 billion.

Kyung Dong Navien, a notable player in South Korea's heating solutions market, has shown impressive financial stability. Over the past year, earnings surged by 85.5%, significantly outpacing the building industry’s 28.5% growth rate. The company’s net debt to equity ratio stands at a satisfactory 6.5%, and its price-to-earnings ratio is an attractive 9.7x compared to the KR market's 11x average. Additionally, Kyung Dong Navien repurchased shares in the latest year, signaling confidence in its future prospects.

KOSE:A009450 Debt to Equity as at Sep 2024
KOSE:A009450 Debt to Equity as at Sep 2024

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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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