Undiscovered Gems in South Korea to Watch This September 2024

The South Korea stock market has experienced a downturn, finishing lower in three consecutive sessions and losing more than 4 percent. Amidst this volatility, the KOSPI index now hovers just above the 2,575-point mark, with investors keenly awaiting key U.S. jobs data. In such fluctuating markets, identifying stocks with strong fundamentals and growth potential can be particularly rewarding. 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
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.98%	★★★★★★
Korea Cast Iron Pipe Ind	NA	1.97%	8.84%	★★★★★★
Samyang	49.49%	6.68%	23.96%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆

Click here to see the full list of 188 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Hyundai G.F. Holdings (KOSE:A005440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hyundai G.F. Holdings Co., Ltd. engages in the rental and investment businesses and has a market cap of ₩787.32 billion.

Operations: The company generates revenue primarily through its rental and investment activities.

Hyundai G.F. Holdings, a promising small-cap entity, has shown remarkable earnings growth of 242291% over the past year, significantly outpacing its industry peers at 21.7%. The company is trading at 42.8% below its estimated fair value and is forecasted to grow revenue by 20.82% annually. Additionally, Hyundai G.F.'s debt-to-equity ratio increased from 1.6% to 10.7% over five years, suggesting a strategic leverage shift while maintaining more cash than total debt for financial flexibility.

• Get an in-depth perspective on Hyundai G.F. Holdings' performance by reading our health report here.

• Examine Hyundai G.F. Holdings' past performance report to understand how it has performed in the past.

Korea Electric Power Industrial Development (KOSE:A130660)

Simply Wall St Value Rating: ★★★★★★

Overview: Korea Electric Power Industrial Development Co., Ltd. (KOSE:A130660) focuses on providing electric power generation services and has a market cap of ₩463.25 billion.

Operations: The company generates revenue primarily from electric power generation services, amounting to ₩373.29 billion.

Korea Electric Power Industrial Development has shown impressive growth, with earnings rising 26.8% over the past year, outpacing the Electric Utilities industry’s 4.6%. The debt to equity ratio improved from 10.7 to 6.2 over five years, and the company has more cash than its total debt. Recent reports highlight a net income of KRW 10.89 million for Q2 2024, up from KRW 8.35 million last year, and basic earnings per share increasing to KRW 334 from KRW 256 a year ago.

• Dive into the specifics of Korea Electric Power Industrial Development here with our thorough health report.

• Review our historical performance report to gain insights into Korea Electric Power Industrial Development's's past performance.

Cuckoo Holdings (KOSE:A192400)

Simply Wall St Value Rating: ★★★★★☆

Overview: Cuckoo Holdings Co., Ltd., along with its subsidiaries, manufactures and sells electric heaters and daily necessities in South Korea and internationally, with a market cap of ₩775.41 billion.

Operations: Cuckoo Holdings generates revenue primarily from its electric heating appliances, amounting to ₩797.73 billion. The company’s cost structure and profitability are influenced by various factors, with a notable gross profit margin of 35.50%.

Cuckoo Holdings, a notable player in South Korea's consumer durables sector, offers an intriguing investment opportunity. The company has seen earnings grow at 8.8% annually over the past five years and is trading at 79% below its estimated fair value. Despite a modest debt to equity ratio increase from 0% to 0.04%, Cuckoo remains financially robust with more cash than total debt and positive free cash flow of US$83M as of June 2024.

• Navigate through the intricacies of Cuckoo Holdings with our comprehensive health report here.

• Assess Cuckoo Holdings' past performance with our detailed historical performance reports.

Taking Advantage

• Get an in-depth perspective on all 188 KRX Undiscovered Gems With Strong Fundamentals by using our screener here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Looking For Alternative Opportunities?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com