Discovering South Korea's Undiscovered Gems In August 2024

Over the last 7 days, the South Korean market has remained flat, with notable strength in the Financials sector, which gained 5.6%. In this context of steady growth and promising earnings forecasts, identifying undervalued stocks with strong fundamentals becomes crucial for investors looking to capitalize on emerging opportunities.

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 Cast Iron Pipe Ind	NA	1.97%	8.84%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.98%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
SELVAS Healthcare	13.58%	10.16%	77.14%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.38%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆

Click here to see the full list of 187 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Gaonchips (KOSDAQ:A399720)

Simply Wall St Value Rating: ★★★★★☆

Overview: Gaonchips Co., Ltd. specializes in the manufacturing of semiconductors and has a market cap of ₩602 billion.

Operations: Revenue from semiconductor sales is ₩68.88 billion, contributing significantly to the company's financial performance.

Gaonchips, a small cap player in South Korea's semiconductor sector, has seen its earnings surge by 111.2% over the past year, significantly outpacing the industry average of -13.8%. The company repurchased shares in 2024, reflecting confidence in its growth trajectory. With high-quality earnings and interest payments well-covered by profits, Gaonchips is financially robust. Earnings are forecasted to grow 69.13% annually, indicating strong future prospects despite recent share price volatility.

• Take a closer look at Gaonchips' potential here in our health report.

• Evaluate Gaonchips' historical performance by accessing our past performance report.

Sebang Global Battery (KOSE:A004490)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sebang Global Battery Co., Ltd., along with its subsidiaries, manufactures and sells lead acid batteries in South Korea and internationally, with a market cap of ₩1.37 trillion.

Operations: Sebang Global Battery generates revenue primarily through the sale of lead acid batteries in both domestic and international markets. The company’s financial performance includes detailed cost breakdowns, with significant attention to production and operational expenses. Gross profit margin trends provide insights into profitability, reflecting the company's efficiency in managing production costs relative to its revenue.

Sebang Global Battery, a small cap player in South Korea, has seen earnings growth of 190.8% over the past year, significantly outperforming the Auto Components industry’s 19.8%. The company repurchased shares this year and trades at 30.1% below estimated fair value. Its debt to equity ratio increased from 12.5% to 17.1% over five years but remains manageable due to high-quality earnings and positive free cash flow.

• Navigate through the intricacies of Sebang Global Battery with our comprehensive health report here.

• Review our historical performance report to gain insights into Sebang Global Battery's's past performance.

Hanil Cement (KOSE:A300720)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hanil Cement Co., Ltd. produces and sells cements, ready-mixed concretes, and admixtures with a market cap of ₩1.07 billion.

Operations: Hanil Cement generates revenue primarily from its Cement Sector (₩917.01 billion), Remital Sector (₩493.88 billion), and Ready-Mixed Concrete Sector (₩294.82 billion).

Hanil Cement, a notable player in South Korea's materials sector, has shown impressive earnings growth of 90.7% over the past year, significantly outpacing the industry average of 7.2%. The company's net debt to equity ratio stands at a satisfactory 20.8%, indicating prudent financial management. Additionally, its interest payments are well covered by EBIT with a coverage ratio of 14.5x, reflecting strong profitability and operational efficiency.

• Dive into the specifics of Hanil Cement here with our thorough health report.

• Learn about Hanil Cement's historical performance.

Seize The Opportunity

• Explore the 187 names from our KRX Undiscovered Gems With Strong Fundamentals screener here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Seeking Other Investments?

• 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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