3 Top KRX Stocks Estimated To Be Trading At Up To 35.5% Below Intrinsic Value

Over the last 7 days, the South Korean market has risen 1.9%, driven by gains of 4.0% in the Information Technology sector, and is up 3.8% over the last 12 months with earnings forecasted to grow by 28% annually. In this favorable environment, identifying undervalued stocks can offer substantial opportunities for investors seeking to capitalize on potential growth at a discount.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
Samwha ElectricLtd (KOSE:A009470)	₩50300.00	₩92487.10	45.6%
APR (KOSE:A278470)	₩275000.00	₩512035.82	46.3%
VIOL (KOSDAQ:A335890)	₩9240.00	₩17828.87	48.2%
JUSUNG ENGINEERINGLtd (KOSDAQ:A036930)	₩28300.00	₩50138.94	43.6%
TOVISLtd (KOSDAQ:A051360)	₩20200.00	₩39012.00	48.2%
Global Tax Free (KOSDAQ:A204620)	₩3935.00	₩7000.78	43.8%
Jeisys Medical (KOSDAQ:A287410)	₩13000.00	₩23687.14	45.1%
Wonik Ips (KOSDAQ:A240810)	₩37150.00	₩64878.26	42.7%
Lutronic (KOSDAQ:A085370)	₩36700.00	₩63217.94	41.9%
ABCO Electronics (KOSDAQ:A036010)	₩6300.00	₩11516.97	45.3%

Click here to see the full list of 34 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

HD Korea Shipbuilding & Offshore Engineering (KOSE:A009540)

Overview: HD Korea Shipbuilding & Offshore Engineering Co., Ltd. operates in the shipbuilding and offshore engineering industry, with a market cap of ₩14.32 trillion.

Operations: HD Korea Shipbuilding & Offshore Engineering generates revenue primarily from its shipbuilding and offshore engineering operations.

Estimated Discount To Fair Value: 23.8%

HD Korea Shipbuilding & Offshore Engineering is trading at ₩202,500, which is 23.8% below its estimated fair value of ₩265,828.06. The company reported significant earnings growth over the past year and its earnings are expected to grow significantly over the next three years at a rate of 36.83% annually, outpacing the KR market average of 28.3%. Recent Q2 results showed a substantial increase in net income from KRW 49,779.53 million to KRW 292,130.85 million year-over-year.

• According our earnings growth report, there's an indication that HD Korea Shipbuilding & Offshore Engineering might be ready to expand.
• Click here to discover the nuances of HD Korea Shipbuilding & Offshore Engineering with our detailed financial health report.

HANMI Semiconductor (KOSE:A042700)

Overview: HANMI Semiconductor Co., Ltd. manufactures and sells semiconductor equipment in South Korea and internationally, with a market cap of ₩12.01 billion.

Operations: The company generates revenue primarily from its semiconductor segment, amounting to ₩209.80 billion.

Estimated Discount To Fair Value: 35.5%

HANMI Semiconductor is trading at ₩125,800, significantly below its estimated fair value of ₩194,990. The company's earnings are projected to grow 33.84% annually over the next three years, surpassing the KR market average of 28.3%. Recent buyback activities include repurchasing shares worth ₩45.35 billion from April to June 2024 and a new program announced in July aimed at stabilizing stock prices and enhancing shareholder value.

• Our comprehensive growth report raises the possibility that HANMI Semiconductor is poised for substantial financial growth.
• Navigate through the intricacies of HANMI Semiconductor with our comprehensive financial health report here.

HD Hyundai Electric (KOSE:A267260)

Overview: HD Hyundai Electric Co., Ltd. manufactures and sells electrical equipment in South Korea and has a market cap of ₩11.07 trillion.

Operations: HD Hyundai Electric Co., Ltd. generates revenue from various segments including power transformers, gas insulated switchgear, and low and medium voltage circuit breakers.

Estimated Discount To Fair Value: 35.2%

HD Hyundai Electric is trading at ₩307,500, 35.2% below its estimated fair value of ₩474,621.38. Despite high volatility over the past three months, the company has shown robust earnings growth of 109.3% in the past year and is expected to grow earnings by 23.71% annually over the next three years, though this is slower than the KR market average (28.3%). Analysts forecast a significant stock price increase of 44.5%.

• The growth report we've compiled suggests that HD Hyundai Electric's future prospects could be on the up.
• Take a closer look at HD Hyundai Electric's balance sheet health here in our report.

Make It Happen

• Navigate through the entire inventory of 34 Undervalued KRX Stocks Based On Cash Flows here.
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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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