Stock Analysis

Discovering PSK HOLDINGS And 2 Other Hidden Small Cap Gems In South Korea

KOSDAQ:A137400
Source: Shutterstock

Over the last 7 days, the South Korean market has risen 1.2%, although it has been flat overall in the past year. With earnings forecast to grow by 29% annually, identifying promising small-cap stocks like PSK HOLDINGS can be a strategic move for investors looking to capitalize on future growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Korea Cast Iron Pipe IndNA1.97%8.84%★★★★★★
Samyang49.49%6.68%23.96%★★★★★★
Woori Technology InvestmentNA25.66%-1.45%★★★★★★
Kyung Dong Navien22.40%11.19%18.84%★★★★★★
SELVAS Healthcare13.50%9.36%71.59%★★★★★★
Synergy Innovation12.39%12.87%28.82%★★★★★★
ONEJOON10.13%35.30%-5.78%★★★★★☆
Oriental Precision & EngineeringLtd54.53%3.14%0.80%★★★★★☆
Daewon Cable30.50%8.72%60.28%★★★★★☆
THINKWARE36.75%21.25%22.92%★★★★☆☆

Click here to see the full list of 194 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 ₩984.32 billion.

Operations: Revenue from semiconductor manufacturing equipment amounts to ₩132.98 billion.

PSK Holdings has shown impressive earnings growth of 40.8% over the past year, significantly outpacing the semiconductor industry’s -10%. Despite a volatile share price in recent months, the company remains profitable with a notable one-off gain of ₩26.4B impacting its latest financial results to June 30, 2024. The debt-to-equity ratio has increased from 0% to 4.4% over five years, but PSK still holds more cash than total debt and was recently added to the S&P Global BMI Index on September 23rd.

KOSDAQ:A031980 Earnings and Revenue Growth as at Sep 2024
KOSDAQ:A031980 Earnings and Revenue Growth as at Sep 2024

People & Technology (KOSDAQ:A137400)

Simply Wall St Value Rating: ★★★★★★

Overview: People & Technology Inc. specializes in providing coating, calendaring, slitting, automation, and other machinery solutions with a market cap of ₩1.34 billion.

Operations: People & Technology Inc. generates revenue primarily from its Machinery & Industrial Equipment segment, which reported ₩792.60 million.

People & Technology has shown impressive earnings growth of 50.9% over the past year, significantly outpacing the Machinery industry's 5.4%. The company's interest payments are well covered by EBIT, with a coverage ratio of 30.3x, indicating strong financial health. Additionally, its net debt to equity ratio stands at a satisfactory 19.4%, down from 78% five years ago. Trading at 55.5% below its estimated fair value, People & Technology appears undervalued with promising future prospects.

KOSDAQ:A137400 Earnings and Revenue Growth as at Sep 2024
KOSDAQ:A137400 Earnings and Revenue Growth as at Sep 2024

Taihan Cable & Solution (KOSE:A001440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Taihan Cable & Solution Co., Ltd. manufactures, processes, and sells electric wires, cables, and related products worldwide with a market cap of ₩2.30 trillion.

Operations: Taihan Cable & Solution generates revenue primarily from its wire segment, amounting to ₩3.42 billion. The company also reports inter-division sales of -₩0.38 billion.

Taihan Cable & Solution, a notable player in South Korea's electrical industry, has shown impressive financial metrics. The company's net income for Q2 2024 was KRW 24.88 million, up from KRW 12.82 million the previous year, with basic EPS rising to KRW 134 from KRW 104. Over the past five years, its debt-to-equity ratio improved significantly from 203.6% to 30.2%. Despite a dip in sales to KRW 8.82 million this quarter compared to last year's KRW 9.75 million, earnings growth of 127% outpaced the industry's average of 18.5%.

KOSE:A001440 Earnings and Revenue Growth as at Sep 2024
KOSE:A001440 Earnings and Revenue Growth as at Sep 2024

Next Steps

Want To Explore Some Alternatives?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com