Stock Analysis

KRX Value Stocks Estimated To Be Below Intrinsic Worth For September 2024

KOSE:A352820
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The South Korea stock market has experienced a recent downturn, with the KOSPI index resting just above the 2,660-point mark after a series of mixed performances across various sectors. As investors navigate these fluctuating conditions, identifying undervalued stocks that are estimated to be below their intrinsic worth can present compelling opportunities for long-term growth and stability.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

NameCurrent PriceFair Value (Est)Discount (Est)
APR (KOSE:A278470)₩257000.00₩510973.2049.7%
T'Way Air (KOSE:A091810)₩2940.00₩5767.8149%
Cosmecca Korea (KOSDAQ:A241710)₩78300.00₩143617.4445.5%
Genohco (KOSDAQ:A361390)₩13850.00₩26160.9547.1%
Global Tax Free (KOSDAQ:A204620)₩3605.00₩6780.9946.8%
ABCO Electronics (KOSDAQ:A036010)₩5780.00₩11447.7349.5%
Shinsung E&GLtd (KOSE:A011930)₩1676.00₩2986.1343.9%
Hanall Biopharma (KOSE:A009420)₩40050.00₩70271.9143%
Raonsecure (KOSDAQ:A042510)₩2390.00₩4409.6345.8%
Hotel ShillaLtd (KOSE:A008770)₩47450.00₩83235.6743%

Click here to see the full list of 31 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Hanall Biopharma (KOSE:A009420)

Overview: Hanall Biopharma Co., Ltd. is a pharmaceutical company that manufactures and sells pharmaceutical products both in South Korea and internationally, with a market cap of ₩2.03 billion.

Operations: Revenue from the manufacture and sale of pharmaceuticals is ₩130.37 billion.

Estimated Discount To Fair Value: 43%

Hanall Biopharma is trading 43% below its estimated fair value of ₩70,271.91, indicating it is highly undervalued based on discounted cash flows. Despite recent earnings showing a significant net loss of ₩3.65 billion for the first half of 2024 compared to a net income of ₩6.05 billion a year ago, analysts forecast revenue growth at 16.4% per year and expect profitability within three years, outpacing average market growth in South Korea.

KOSE:A009420 Discounted Cash Flow as at Sep 2024
KOSE:A009420 Discounted Cash Flow as at Sep 2024

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 approximately ₩13.53 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: 34.3%

HD Korea Shipbuilding & Offshore Engineering reported robust earnings for Q2 2024, with net income surging to ₩292.13 billion from ₩49.78 billion a year ago, driven by strong sales growth. Trading at ₩191,400, it is significantly undervalued compared to its estimated fair value of ₩291,415.06 based on discounted cash flows. Analysts forecast annual earnings growth of 38.72% over the next three years and revenue growth of 11.6% per year, outpacing the market average in South Korea.

KOSE:A009540 Discounted Cash Flow as at Sep 2024
KOSE:A009540 Discounted Cash Flow as at Sep 2024

HYBE (KOSE:A352820)

Overview: HYBE Co., Ltd. operates in music production, publishing, and artist development and management with a market cap of ₩7.68 billion.

Operations: HYBE Co., Ltd. generates revenue from three main segments: Label (₩1.28 billion), Platform (₩361.12 million), and Solution (₩1.24 billion).

Estimated Discount To Fair Value: 19.3%

HYBE Co., Ltd. is trading at ₩184,400, below its estimated fair value of ₩228,529.11 based on discounted cash flows. Despite recent earnings declines and one-off items impacting results, the company’s annual profit growth is forecast at 42.47%, outpacing the KR market's 29.1%. Revenue growth is expected at 14.1% per year, faster than the market average of 10.8%. Additionally, HYBE announced a share repurchase program to stabilize stock prices.

KOSE:A352820 Discounted Cash Flow as at Sep 2024
KOSE:A352820 Discounted Cash Flow as at Sep 2024

Key Takeaways

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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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