Discovering Creative & Innovative System And 2 Other Hidden South Korean Small Cap Gems

Over the last 7 days, the South Korean market has risen 7.9%, although its performance over the past year has remained flat. With earnings expected to grow by 28% per annum over the next few years, now is an opportune time to explore some lesser-known small-cap stocks that show potential for innovation and growth.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Airport ServiceLtd	NA	0.40%	27.17%	★★★★★★
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
NOROO PAINT & COATINGS	17.16%	5.11%	6.31%	★★★★★★
ASIA Holdings	34.13%	8.28%	15.67%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Kyungdong Invest	8.15%	3.08%	15.07%	★★★★★★
Oriental Precision & EngineeringLtd	59.19%	3.54%	5.92%	★★★★★★
Hansae Yes24 Holdings	97.82%	2.74%	18.89%	★★★★★☆
KG Chemical	43.62%	33.46%	8.39%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆

Click here to see the full list of 202 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Creative & Innovative System (KOSDAQ:A222080)

Simply Wall St Value Rating: ★★★★★☆

Overview: Creative & Innovative System Corporation manufactures and sells equipment for lithium-ion batteries powering IT instruments, EV lithium-ion batteries, fuel cells, solar cells, and displays with a market cap of ₩758.18 billion.

Operations: The company generates revenue primarily from the sale of machinery and industrial equipment, amounting to ₩378.93 billion.

Creative & Innovative System, a small-cap company in South Korea, has shown impressive performance with earnings growth of 417.1% over the past year, significantly outpacing the Machinery industry’s -3.5%. The company's debt to equity ratio improved from 49% to 6.6% in five years, indicating better financial health. Despite this progress, shareholders experienced dilution in the past year. Future earnings are projected to grow at an annual rate of 25.8%, suggesting continued potential for expansion.

• Click here and access our complete health analysis report to understand the dynamics of Creative & Innovative System.

• Learn about Creative & Innovative System's historical performance.

Daewoong (KOSE:A003090)

Simply Wall St Value Rating: ★★★★★★

Overview: Daewoong Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of pharmaceuticals in South Korea, with a market cap of ₩936.40 billion.

Operations: Revenue primarily comes from pharmaceutical manufacturing and sales (₩1.98 trillion) and service provision (₩120.70 billion), with additional income from real estate rental (₩11.88 billion).

Daewoong's debt to equity ratio has improved from 39.7% to 32.2% over five years, reflecting prudent financial management. Despite a volatile share price recently, the company’s net debt to equity ratio stands at a satisfactory 14.4%. Earnings have grown by an impressive 23.6% annually over the past five years, although last year's growth of 15.1% lagged behind the industry average of 18.9%. With a P/E ratio of just 6.9x compared to the KR market's 11.7x, Daewoong offers good value and high-quality earnings backed by strong EBIT coverage of interest payments at 43 times.

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

• Gain insights into Daewoong's historical performance by reviewing our past performance report.

Kyung Dong Navien (KOSE:A009450)

Simply Wall St Value Rating: ★★★★★★

Overview: Kyung Dong Navien Co., Ltd. manufactures and sells machinery and heat combustion equipment in South Korea, with a market cap of ₩966.90 billion.

Operations: Kyung Dong Navien generates revenue primarily through the sale of machinery and heat combustion equipment. The company has a market cap of ₩966.90 billion.

Kyung Dong Navien, a small cap in South Korea, has shown impressive earnings growth of 27.8% over the past year, outpacing the Building industry’s 16.2%. The company’s net debt to equity ratio stands at a satisfactory 1.9%, and its interest payments are well covered by EBIT at 20.1x coverage. Additionally, Kyung Dong Navien's price-to-earnings ratio is favorable at 11.6x compared to the KR market average of 11.7x, indicating good value for investors seeking quality earnings and robust financial health.

• Delve into the full analysis health report here for a deeper understanding of Kyung Dong Navien.

• Assess Kyung Dong Navien's past performance with our detailed historical performance reports.

Make It Happen

• Unlock our comprehensive list of 202 KRX Undiscovered Gems With Strong Fundamentals by clicking here.
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Interested In Other Possibilities?

• 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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