KRX Stocks That May Be Trading Below Their Estimated Value In September 2024

The South Korean market is up 2.2% over the last week, with the Industrials sector seeing a notable 5.0% increase, although overall performance has been flat over the past year. With earnings forecast to grow by 29% annually, identifying stocks that may be trading below their estimated value can offer significant opportunities for investors in such a steady yet promising environment.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
T'Way Air (KOSE:A091810)	₩2985.00	₩5711.83	47.7%
APR (KOSE:A278470)	₩294500.00	₩519642.16	43.3%
Cosmecca Korea (KOSDAQ:A241710)	₩87500.00	₩152285.55	42.5%
Lutronic (KOSDAQ:A085370)	₩36700.00	₩63217.94	41.9%
Intellian Technologies (KOSDAQ:A189300)	₩49600.00	₩90834.31	45.4%
Shinsung E&GLtd (KOSE:A011930)	₩1640.00	₩2977.56	44.9%
Global Tax Free (KOSDAQ:A204620)	₩3630.00	₩6405.53	43.3%
Hd Hyundai MipoLtd (KOSE:A010620)	₩102100.00	₩170458.08	40.1%
Hotel ShillaLtd (KOSE:A008770)	₩45500.00	₩81588.97	44.2%
Kakao Games (KOSDAQ:A293490)	₩17220.00	₩29708.61	42%

Click here to see the full list of 33 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

SK hynix (KOSE:A000660)

Overview: SK hynix Inc., with a market cap of ₩112.11 trillion, manufactures, distributes, and sells semiconductor products across Korea, China, the rest of Asia, the United States, and Europe.

Operations: The company's revenue segment for the manufacture and sale of semiconductor products is ₩49.22 billion.

Estimated Discount To Fair Value: 20.6%

SK hynix, trading at ₩162,800, is viewed as undervalued based on cash flows with a fair value estimate of ₩205,049.93. Recent earnings show a significant turnaround with Q2 net income at KRW 4.12 trillion compared to a loss last year. The company’s introduction of high-performance GDDR7 graphics memory and strategic collaborations in SSD products bolster its growth prospects in AI and gaming markets, supporting its strong revenue forecast of 22.4% annually over the next three years.

• Our comprehensive growth report raises the possibility that SK hynix is poised for substantial financial growth.
• Get an in-depth perspective on SK hynix's balance sheet by reading our health report here.

HD Korea Shipbuilding & Offshore Engineering (KOSE:A009540)

Overview: HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (KOSE:A009540) operates in the shipbuilding and offshore engineering industry with a market cap of ₩12.94 trillion.

Operations: The company's revenue segments include Shipbuilding (₩21.80 billion), Engine (₩4.21 billion), Green Energy (₩467.66 million), and Marine Plant (₩802.72 million).

Estimated Discount To Fair Value: 40%

HD Korea Shipbuilding & Offshore Engineering, trading at ₩183,000, is significantly undervalued with a fair value estimate of ₩305,135.25. Earnings grew by 1817.8% over the past year and are forecast to grow 38.76% annually, outpacing the market's 28.8%. Recent strategic partnerships aim to develop innovative ammonia-cracking technology for clean hydrogen fuel, potentially enhancing future cash flows and supporting its revenue growth forecast of 11.5% per year.

• Our growth report here indicates HD Korea Shipbuilding & Offshore Engineering may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of HD Korea Shipbuilding & Offshore Engineering stock in this financial health report.

HD Hyundai Electric (KOSE:A267260)

Overview: HD Hyundai Electric Co., Ltd. manufactures and sells electrical equipment in South Korea, with a market cap of ₩10.20 trillion.

Operations: The company's revenue primarily comes from its electric equipment segment, totaling ₩3.21 trillion.

Estimated Discount To Fair Value: 37.5%

HD Hyundai Electric, trading at ₩283,500, is significantly undervalued with a fair value estimate of ₩453,511.02. Recent earnings show a strong performance with net income rising to KRW 161.5 billion from KRW 37.7 billion year-over-year. Despite volatility in share price and revenue growth forecasted at 14.5% per year—slower than the market's 20%—its high return on equity and expected annual profit growth of 23.6% make it an attractive option based on cash flows.

• Our earnings growth report unveils the potential for significant increases in HD Hyundai Electric's future results.
• Take a closer look at HD Hyundai Electric's balance sheet health here in our report.

Next Steps

• Gain an insight into the universe of 33 Undervalued KRX Stocks Based On Cash Flows by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Want To Explore Some Alternatives?

• 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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