Discovering Hidden Gems in South Korea for September 2024

The South Korea stock market has finished lower in three straight sessions, plunging more than 105 points or 4 percent along the way. The KOSPI now rests just above the 2,575-point plateau although it's due for support on Friday. Despite recent volatility, discerning investors know that downturns can present opportunities to discover hidden gems with strong fundamentals and growth potential. In this article, we will explore three lesser-known South Korean stocks that could be promising investments for September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
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%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.38%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆

Click here to see the full list of 184 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks 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 ₩1.09 billion.

Operations: VT Co., Ltd. generates revenue primarily from its Cosmetic segment (₩256.27 billion) and Entertainment segment (₩93.74 billion), with additional contributions from Laminating machines and films (₩33.86 billion). The company focuses on these key areas to drive its financial performance.

VT Co., Ltd. has shown impressive financial performance, with earnings growing by 563.7% over the past year, significantly outpacing the Personal Products industry growth of 30.2%. The company reported second-quarter sales of KRW 113.35 million and net income of KRW 15.40 million, compared to KRW 74.69 million and KRW 5.09 million a year ago respectively, demonstrating robust revenue expansion and profitability improvements. Additionally, VT's debt-to-equity ratio has decreased from 71.2% to 22.4% over five years, reflecting strong financial management and reduced leverage risk.

• Get an in-depth perspective on VT's performance by reading our health report here.

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

Eugene Investment & SecuritiesLtd (KOSE:A001200)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eugene Investment & Securities Co.,Ltd. offers a range of financial products and services to individuals, corporates, and institutional investors, with a market cap of approximately ₩401.80 billion.

Operations: Eugene Investment & Securities Co.,Ltd. generates revenue primarily from self-trading (₩120.58 billion), consignment trade (₩91.24 billion), and gift brokerage (₩47.97 billion). The company also engages in asset management business contributing ₩14.41 billion to its revenue, while the OTC derivatives business results in a negative impact of -₩19.46 billion on its financials.

Eugene Investment & Securities has shown a notable turnaround with net income of ₩20.67B for Q2 2024, compared to a net loss of ₩1.27B in the same period last year. The company posted basic earnings per share of ₩225, up from a loss per share of ₩14 previously. Over the past year, earnings growth hit 251%, outpacing the Capital Markets industry’s -3.7%. Despite a large one-off loss impacting recent results, its debt to equity ratio improved from 452.6% to 407.4% over five years.

• Click here and access our complete health analysis report to understand the dynamics of Eugene Investment & SecuritiesLtd.

• Examine Eugene Investment & SecuritiesLtd's past performance report to understand how it has performed in the past.

Hyundai G.F. Holdings (KOSE:A005440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hyundai G.F. Holdings Co., Ltd. engages in rental and investment businesses, with a market cap of ₩767.05 billion.

Operations: Hyundai G.F. Holdings generates revenue primarily from its rental and investment activities.

Hyundai G.F. Holdings has seen remarkable earnings growth of 242291% over the past year, far outpacing the Trade Distributors industry average of 21.7%. The company is trading at a significant discount, approximately 43.8% below its estimated fair value. Despite an increase in its debt-to-equity ratio from 1.6 to 10.7 over five years, Hyundai G.F.'s revenue is forecasted to grow by around 20.82% annually, indicating strong future prospects and financial resilience in a competitive market.

• Navigate through the intricacies of Hyundai G.F. Holdings with our comprehensive health report here.

• Learn about Hyundai G.F. Holdings' historical performance.

Make It Happen

• Delve into our full catalog of 184 KRX Undiscovered Gems With Strong Fundamentals here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready For A Different Approach?

• 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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