Stock Analysis

KRX Value Stocks Trading Below Estimated Worth In August 2024

KOSE:A000660
Source: Shutterstock

The South Korean market has remained flat over the last week, with the Financials sector gaining 4.1%, and is up 3.4% over the past year, while earnings are forecast to grow by 29% annually. In this context, identifying undervalued stocks—those trading below their estimated worth—can offer significant opportunities for investors looking to capitalize on potential growth in a stable market environment.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

NameCurrent PriceFair Value (Est)Discount (Est)
C&C International (KOSDAQ:A352480)₩114400.00₩201579.2943.2%
Samwha ElectricLtd (KOSE:A009470)₩50000.00₩92050.0645.7%
Samyang Foods (KOSE:A003230)₩617000.00₩1086674.0243.2%
Tonymoly (KOSE:A214420)₩9880.00₩19080.8848.2%
Jeisys Medical (KOSDAQ:A287410)₩12920.00₩23814.3745.7%
TSE (KOSDAQ:A131290)₩49900.00₩94070.3647%
Lutronic (KOSDAQ:A085370)₩36700.00₩63217.9441.9%
Intellian Technologies (KOSDAQ:A189300)₩55400.00₩109525.0049.4%
CS Wind (KOSE:A112610)₩47650.00₩87809.0345.7%
SK Biopharmaceuticals (KOSE:A326030)₩87100.00₩170336.8948.9%

Click here to see the full list of 34 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

iFamilySC (KOSDAQ:A114840)

Overview: iFamilySC Co., Ltd. is an interactive branding company that connects content and products both online and offline in South Korea and internationally, with a market cap of ₩571.96 billion.

Operations: The company's revenue segments include the Cosmetics Business Division, generating ₩168.68 billion, and the Wedding Business Sector, Etc., contributing ₩4.57 billion.

Estimated Discount To Fair Value: 14.9%

iFamilySC is trading at ₩33,250, below its estimated fair value of ₩39,079.54. The company's earnings grew by 160.4% over the past year and are forecast to grow significantly at 26.83% annually over the next three years. Despite high share price volatility recently, iFamilySC has announced a KRW 3 billion share repurchase program to enhance shareholder value, indicating management's confidence in its undervaluation based on cash flows.

KOSDAQ:A114840 Discounted Cash Flow as at Aug 2024
KOSDAQ:A114840 Discounted Cash Flow as at Aug 2024

SK hynix (KOSE:A000660)

Overview: SK hynix Inc., with a market cap of ₩133.91 trillion, manufactures, distributes, and sells semiconductor products across Korea, China, the rest of Asia, the United States, and Europe.

Operations: Revenue segments for SK hynix Inc. include ₩22.41 trillion from DRAM, ₩6.08 trillion from NAND Flash, and ₩1.15 trillion from others such as MCP (Multi-Chip Package) and CIS (CMOS Image Sensor).

Estimated Discount To Fair Value: 22.4%

SK hynix is trading at ₩194,600, significantly below its estimated fair value of ₩250,904.96. Recent product advancements like the GDDR7 graphics memory and PCB01 SSD for AI PCs highlight the company's innovative edge. Analysts forecast a 25.4% annual revenue growth and expect profitability within three years, outpacing market averages. Despite high share price volatility, SK hynix's strong cash flows and upcoming product launches position it as an undervalued stock with substantial growth potential in South Korea's tech sector.

KOSE:A000660 Discounted Cash Flow as at Aug 2024
KOSE:A000660 Discounted Cash Flow as at Aug 2024

Hanall Biopharma (KOSE:A009420)

Overview: Hanall Biopharma Co., Ltd. is a pharmaceutical company that manufactures and sells pharmaceutical products in South Korea and internationally, with a market cap of ₩1.79 billion.

Operations: The company's revenue segments include the manufacture and sale of pharmaceutical products both domestically and internationally.

Estimated Discount To Fair Value: 19.1%

Hanall Biopharma is trading at ₩35,400, below its estimated fair value of ₩43,781.27. The company recently appointed Christopher W. Slavinsky as Chief Business Development and Legal Officer to enhance strategic growth. Despite a net loss reduction from KRW 1,253.56 million to KRW 323.32 million year-over-year in Q1 2024, Hanall's ongoing Phase III VELOS-4 study for tanfanercept in dry eye treatment underscores its potential for future revenue growth and market positioning improvements based on cash flows.

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

Where To Now?

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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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