Discovering 3 Undiscovered Gems in South Korea with Strong Potential

Over the last 7 days, the South Korean market has risen 1.9%, driven by gains of 4.0% in the Information Technology sector, and is up 3.8% over the last 12 months with earnings forecast to grow by 28% annually. In this promising environment, identifying stocks with strong potential can be key to capitalizing on these positive trends.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
ASIA Holdings	34.13%	8.28%	15.67%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
SELVAS Healthcare	13.58%	10.16%	77.14%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
BIO-FD&CLtd	2.01%	8.27%	22.82%	★★★★★★
Hansae Yes24 Holdings	97.82%	2.74%	18.89%	★★★★★☆
KG Chemical	43.62%	33.46%	8.39%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.38%	★★★★★☆
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.

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

PSK HOLDINGS (KOSDAQ:A031980)

Simply Wall St Value Rating: ★★★★★☆

Overview: PSK HOLDINGS Inc. manufactures and sells semiconductor manufacturing and flat panel display equipment worldwide, with a market cap of ₩1.11 trillion.

Operations: PSK HOLDINGS generates revenue primarily from its semiconductor manufacturing equipment segment, which accounted for ₩117.90 billion. The company's market cap stands at ₩1.11 trillion.

PSK Holdings seems to be an intriguing pick within the South Korean market. The company has managed to grow its earnings by 16.4% over the past year, significantly outpacing the semiconductor industry’s -18.2%. However, a large one-off gain of ₩18.9B has impacted its recent financial results, which could skew some performance metrics. Additionally, PSK's debt-to-equity ratio has risen from 0.2% to 6.3% over five years, indicating increased leverage but manageable interest coverage suggests it is not a pressing concern.

• Get an in-depth perspective on PSK HOLDINGS' performance by reading our health report here.

• Examine PSK HOLDINGS' past performance report to understand how it has performed in the past.

Creative & Innovative System (KOSDAQ:A222080)

Simply Wall St Value Rating: ★★★★★☆

Overview: Creative & Innovative System Corporation manufactures and sells equipment for lithium-ion batteries used in IT instruments, EV lithium-ion batteries, fuel cells, solar cells, and displays with a market cap of ₩766.79 billion.

Operations: Creative & Innovative System Corporation generates revenue primarily from the sale of equipment for lithium-ion batteries used in various applications. The company's cost structure includes manufacturing costs, research and development expenses, and administrative costs. Its net profit margin has shown variability over recent periods.

Creative & Innovative System has shown a significant turnaround, becoming profitable this year after years of struggle. Its debt to equity ratio has impressively dropped from 45.6% to 2.7% over the past five years, indicating better financial health. The company repurchased shares in 2024, signaling confidence in its future prospects. Trading at a substantial discount of 62.7% below estimated fair value, it offers an intriguing investment opportunity with forecasted earnings growth of 4.59% annually.

• Navigate through the intricacies of Creative & Innovative System with our comprehensive health report here.

• Gain insights into Creative & Innovative System's past trends and performance with our Past report.

Sebang Global Battery (KOSE:A004490)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sebang Global Battery Co., Ltd., along with its subsidiaries, manufactures and sells lead-acid batteries both in South Korea and internationally, with a market cap of ₩1.40 trillion.

Operations: Sebang Global Battery generates revenue primarily from the manufacture and sale of automotive and industrial storage batteries, amounting to ₩1.77 trillion.

Sebang Global Battery, a notable player in the South Korean market, has shown impressive earnings growth of 245.4% over the past year, outpacing the Auto Components industry average of 15.4%. The company's debt to equity ratio increased from 13.6% to 16.3% over five years, indicating a manageable rise in leverage. Trading at 22.4% below estimated fair value suggests potential undervaluation for investors seeking opportunities in emerging markets like South Korea's battery sector.

• Click here to discover the nuances of Sebang Global Battery with our detailed analytical health report.

• Review our historical performance report to gain insights into Sebang Global Battery's's past performance.

Turning Ideas Into Actions

• Discover the full array of 202 KRX Undiscovered Gems With Strong Fundamentals right here.
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Looking For Alternative Opportunities?

• 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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