3 KRX Stocks Estimated To Be Trading Up To 45.6% Below Intrinsic Value

The South Korean market has shown resilience, remaining flat over the last week while achieving an 8.7% increase over the past year, with earnings projected to grow by 29% annually. In this environment, identifying stocks trading below their intrinsic value can offer potential opportunities for investors looking to capitalize on future growth prospects.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
T'Way Air (KOSE:A091810)	₩2910.00	₩5473.17	46.8%
PharmaResearch (KOSDAQ:A214450)	₩230500.00	₩423861.63	45.6%
Cosmecca Korea (KOSDAQ:A241710)	₩75600.00	₩149822.43	49.5%
TSE (KOSDAQ:A131290)	₩50900.00	₩99180.98	48.7%
Lutronic (KOSDAQ:A085370)	₩36700.00	₩63217.94	41.9%
Intellian Technologies (KOSDAQ:A189300)	₩51800.00	₩90691.48	42.9%
Oscotec (KOSDAQ:A039200)	₩38100.00	₩65156.22	41.5%
Shinsung E&GLtd (KOSE:A011930)	₩1491.00	₩2867.95	48%
Global Tax Free (KOSDAQ:A204620)	₩3735.00	₩6415.94	41.8%
Hotel ShillaLtd (KOSE:A008770)	₩44250.00	₩75119.74	41.1%

Click here to see the full list of 33 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

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

JUSUNG ENGINEERINGLtd (KOSDAQ:A036930)

Overview: JUSUNG ENGINEERING Co., Ltd. manufactures and sells semiconductor, display, solar, and lighting equipment in South Korea and internationally, with a market cap of ₩1.28 trillion.

Operations: The company generates revenue primarily from its semiconductor equipment and services segment, amounting to ₩338.28 billion.

Estimated Discount To Fair Value: 33.7%

JUSUNG ENGINEERING Ltd. is trading at ₩27,000, significantly below its estimated fair value of ₩40,708.06, highlighting potential undervaluation based on cash flows. Despite a forecasted low return on equity of 18.1% in three years, the company anticipates robust revenue growth of 21.7% annually—outpacing the South Korean market's average—and earnings growth of 21% per year, albeit slower than the market's expected rate.

• According our earnings growth report, there's an indication that JUSUNG ENGINEERINGLtd might be ready to expand.
• Click here and access our complete balance sheet health report to understand the dynamics of JUSUNG ENGINEERINGLtd.

Hana Materials (KOSDAQ:A166090)

Overview: Hana Materials Inc. manufactures and sells silicon electrodes and rings in South Korea, with a market cap of approximately ₩561.93 billion.

Operations: The company's revenue segments include the production and sale of silicon electrodes and rings in South Korea.

Estimated Discount To Fair Value: 32.6%

Hana Materials is trading at ₩28,750, well below its estimated fair value of ₩42,647.5, indicating potential undervaluation based on cash flows. While revenue growth is expected at 19.3% annually—faster than the South Korean market—the company's profit margins have decreased from 23.3% to 9.6%. Despite high debt levels and a low forecasted return on equity of 15.7%, earnings are projected to grow significantly by over 49% annually.

• The analysis detailed in our Hana Materials growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Hana Materials stock in this financial health report.

PharmaResearch (KOSDAQ:A214450)

Overview: PharmaResearch Co., Ltd., along with its subsidiaries, operates as a biopharmaceutical company primarily in South Korea with a market cap of ₩2.38 trillion.

Operations: The company generates revenue from its Pharmaceuticals segment, amounting to ₩296.59 billion.

Estimated Discount To Fair Value: 45.6%

PharmaResearch is trading at ₩230,500, significantly below its fair value estimate of ₩423,861.63. While earnings are forecast to grow 22.2% annually—slower than the South Korean market—the company's revenue growth is expected to outpace the market at 22.3% per year. Recent private placements could enhance financial flexibility but may dilute existing shares slightly. Return on equity is projected to reach a robust 21.3% in three years, supporting long-term growth prospects.

• Upon reviewing our latest growth report, PharmaResearch's projected financial performance appears quite optimistic.
• Dive into the specifics of PharmaResearch here with our thorough financial health report.

Seize The Opportunity

• Click here to access our complete index of 33 Undervalued KRX Stocks Based On Cash Flows.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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