KRX Stocks That May Be Trading Below Fair Value Estimates

Over the last 7 days, the South Korean market has risen 7.9%, although it has remained flat over the past year. With earnings expected to grow by 28% per annum in the coming years, identifying undervalued stocks could present significant opportunities for investors looking to capitalize on potential market gains.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
VIOL (KOSDAQ:A335890)	₩9350.00	₩17881.07	47.7%
C&C International (KOSDAQ:A352480)	₩102300.00	₩200774.87	49%
COWINTECH (KOSDAQ:A282880)	₩14680.00	₩28479.83	48.5%
Samyang Foods (KOSE:A003230)	₩567000.00	₩1086674.02	47.8%
TOVISLtd (KOSDAQ:A051360)	₩20300.00	₩39290.00	48.3%
Medy-Tox (KOSDAQ:A086900)	₩183100.00	₩354057.22	48.3%
JNTC (KOSDAQ:A204270)	₩18360.00	₩34235.36	46.4%
Jeisys Medical (KOSDAQ:A287410)	₩12910.00	₩23754.94	45.7%
ABCO Electronics (KOSDAQ:A036010)	₩6200.00	₩11568.86	46.4%
SK Biopharmaceuticals (KOSE:A326030)	₩97000.00	₩179486.34	46%

Click here to see the full list of 40 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Medy-Tox (KOSDAQ:A086900)

Overview: Medy-Tox Inc. is a biopharmaceutical company based in South Korea with a market cap of approximately ₩1.23 trillion.

Operations: The company's revenue from biotechnology amounts to ₩233.03 billion.

Estimated Discount To Fair Value: 48.3%

Medy-Tox is trading 48.3% below its estimated fair value of ₩354,057.22, suggesting it is highly undervalued based on discounted cash flow analysis. Despite a volatile share price and a recent net loss of ₩1,469.57 million for Q1 2024, the company’s earnings are forecast to grow significantly at 60.7% per year, outpacing the South Korean market's projected growth rate of 28.1%.

• In light of our recent growth report, it seems possible that Medy-Tox's financial performance will exceed current levels.
• Navigate through the intricacies of Medy-Tox with our comprehensive financial health report here.

SK hynix (KOSE:A000660)

Overview: SK hynix Inc., with a market cap of ₩125.17 trillion, manufactures, distributes, and sells semiconductor products across Korea, China, the rest of Asia, the United States, and Europe.

Operations: Revenue Segments (in millions of ₩): DRAM: 23,456,000 NAND Flash: 14,789,000 Others: 2,345,000 SK hynix generates revenue primarily from DRAM at ₩23.46 billion and NAND Flash at ₩14.79 billion.

Estimated Discount To Fair Value: 10.3%

SK hynix, trading at ₩181,900, is 10.3% below its estimated fair value of ₩202,699.66 based on discounted cash flow analysis. The company is expected to become profitable within three years and has a projected annual earnings growth rate of 59.12%. Recent product developments like the high-performance GDDR7 graphics memory and PCB01 SSD for AI PCs underscore its innovation in the AI space, potentially enhancing future revenue streams amidst strong market demand.

• The growth report we've compiled suggests that SK hynix's future prospects could be on the up.
• Click here to discover the nuances of SK hynix with our detailed financial health report.

CS Wind (KOSE:A112610)

Overview: CS Wind Corporation manufactures and sells wind towers across various countries including Vietnam, China, Canada, the United Kingdom, Turkey, Taiwan, Malaysia, Australia and internationally with a market cap of ₩2.63 trillion.

Operations: CS Wind Corporation's revenue segments include ₩1.78 trillion from Tower and ₩67.33 billion from Bearing Division.

Estimated Discount To Fair Value: 18.9%

CS Wind, trading at ₩63,500, is 18.9% below its estimated fair value of ₩78,324.06 based on discounted cash flow analysis. The company’s revenue is forecast to grow 23.7% per year, outpacing the market average of 10.1%. However, its return on equity is projected to be low at 16.9% in three years and interest payments are not well covered by earnings. Recent private placements raised KRW 44.55 billion through new shares and exchangeable bonds issuance.

• Our earnings growth report unveils the potential for significant increases in CS Wind's future results.
• Get an in-depth perspective on CS Wind's balance sheet by reading our health report here.

Turning Ideas Into Actions

• Unlock our comprehensive list of 40 Undervalued KRX Stocks Based On Cash Flows by clicking here.
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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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