Stock Analysis

Exploring PSK HOLDINGS And Two Emerging Small Caps In South Korea

KOSE:A006040
Source: Shutterstock

The South Korean market has shown a steady performance, remaining flat over the last week and rising by 4.1% over the past year, with earnings anticipated to grow significantly in the coming years. In this context, identifying promising stocks like PSK HOLDINGS and other emerging small caps can offer potential opportunities for investors seeking growth amidst stable market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Korea Cast Iron Pipe IndNA1.97%8.84%★★★★★★
Korea Airport ServiceLtdNA3.97%42.22%★★★★★★
Miwon Chemicals0.08%11.70%14.38%★★★★★★
NOROO PAINT & COATINGS13.99%5.04%7.74%★★★★★★
Woori Technology InvestmentNA25.66%-1.45%★★★★★★
Synergy Innovation12.39%12.87%28.82%★★★★★★
Oriental Precision & EngineeringLtd54.53%3.14%0.80%★★★★★☆
iMarketKorea28.53%5.35%1.30%★★★★★☆
ASIA Holdings34.98%8.43%16.17%★★★★★☆
Itcen64.57%14.33%-24.39%★★★★★☆

Click here to see the full list of 188 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. is engaged in the global manufacturing and sale of semiconductor and flat panel display equipment, with a market cap of ₩1.14 trillion.

Operations: PSK HOLDINGS derives its revenue primarily from the sale of semiconductor manufacturing equipment, generating ₩132.98 billion.

PSK Holdings, a small player in the semiconductor industry, has shown impressive earnings growth of 40.8% over the past year, outpacing the industry's -10%. The company is financially sound with a debt-to-equity ratio that increased to 4.4% over five years and more cash than total debt. Despite a volatile share price recently, its inclusion in the S&P Global BMI Index suggests growing recognition. A notable ₩26 billion one-off gain impacted recent financials, highlighting potential for future stability.

KOSDAQ:A031980 Debt to Equity as at Oct 2024
KOSDAQ:A031980 Debt to Equity as at Oct 2024

Dongwon Industries (KOSE:A006040)

Simply Wall St Value Rating: ★★★★★☆

Overview: Dongwon Industries Co., Ltd. operates in the marine and fisheries, distribution, and logistics sectors both within South Korea and internationally, with a market capitalization of ₩1.24 trillion.

Operations: Dongwon Industries generates revenue primarily from its food processing and distribution sector, which accounts for ₩6.49 trillion, followed by the logistics business at ₩1.41 trillion. The company also has significant contributions from its packaging material sector with ₩1.31 trillion in revenue and the fisheries business sector at ₩690.42 billion.

Dongwon Industries, a promising player with a market cap under the radar, has seen its debt to equity ratio improve from 119.5% to 75.8% over five years, indicating better financial health. The company's earnings surged by 51.7% in the past year, outpacing the food industry average of 23.2%. Trading at a discount of 35.9% below estimated fair value suggests potential upside for investors seeking undervalued opportunities in South Korea's dynamic market landscape.

KOSE:A006040 Earnings and Revenue Growth as at Oct 2024
KOSE:A006040 Earnings and Revenue Growth as at Oct 2024

Kyung Dong Navien (KOSE:A009450)

Simply Wall St Value Rating: ★★★★★★

Overview: Kyung Dong Navien Co., Ltd. is a South Korean company specializing in the manufacturing and sale of machinery and heat combustion equipment, with a market capitalization of ₩1.28 trillion.

Operations: Kyung Dong Navien generates revenue primarily from the air conditioning manufacturing and sale segment, amounting to approximately ₩1.29 billion.

With its earnings surging 85.5% last year, Kyung Dong Navien is making waves in the building industry, outpacing the sector's 28.5% growth. This company boasts high-quality earnings and a positive free cash flow position, adding to its appeal. Over five years, it has slashed its debt-to-equity ratio from 46.4% to 22.4%, showing financial prudence. Interest payments are comfortably covered by EBIT at 27 times over, reflecting robust fiscal health and management efficiency in handling liabilities.

KOSE:A009450 Earnings and Revenue Growth as at Oct 2024
KOSE:A009450 Earnings and Revenue Growth as at Oct 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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