Discovering Undiscovered Gems in South Korea This September 2024

The South Korean market has seen a modest uptick of 1.5% over the last week, driven by a notable 4.0% rise in the Industrials sector, though it has remained flat overall for the past year. With earnings forecasted to grow by 29% annually, identifying promising stocks that align with these growth trends can be particularly rewarding; this article highlights three such undiscovered gems in South Korea this September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Samyang	49.49%	6.68%	23.96%	★★★★★★
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆

Click here to see the full list of 154 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Cheryong ElectricLtd (KOSDAQ:A033100)

Simply Wall St Value Rating: ★★★★★★

Overview: Cheryong Electric Co., Ltd. manufactures and sells power electric equipment in South Korea, with a market cap of ₩905.92 billion.

Operations: Cheryong Electric Co., Ltd. generates revenue primarily from the sale of power electric equipment in South Korea. The company has a market cap of ₩905.92 billion.

Cheryong Electric Ltd., a smaller player in South Korea's electrical industry, has shown impressive financial health and growth. The company is debt-free, a significant improvement from five years ago when its debt to equity ratio was 2.3%. Earnings surged by 134% over the past year, outpacing the industry's 18.5% growth rate. Trading at 80.9% below its estimated fair value, Cheryong offers high-quality earnings and positive free cash flow, despite recent share price volatility.

• Get an in-depth perspective on Cheryong ElectricLtd's performance by reading our health report here.

• Evaluate Cheryong ElectricLtd's historical performance by accessing our past performance report.

YC (KOSDAQ:A232140)

Simply Wall St Value Rating: ★★★★★★

Overview: YC Corporation develops, manufactures, and sells inspection equipment for semiconductor memories both in South Korea and internationally, with a market cap of ₩1.07 billion.

Operations: YC Corporation generates revenue primarily from its Semiconductor Division (₩161.99 billion), followed by Electrical and Electronic Accessories (₩42.12 billion) and Wholesale/Retail (₩4.71 billion).

YC, a promising player in South Korea's semiconductor sector, has seen its debt to equity ratio improve significantly from 43.6% to 18% over the past five years. Despite a recent -7.1% earnings growth, which contrasts with the industry average of -10%, YC remains profitable and its cash runway is secure. The company repurchased shares in 2024, indicating confidence in its future prospects. Earnings are projected to grow by nearly 50% annually, making YC an intriguing investment opportunity despite recent volatility.

• Unlock comprehensive insights into our analysis of YC stock in this health report.

• Gain insights into YC's past trends and performance with our Past report.

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 ₩2.09 trillion.

Operations: Taihan Cable & Solution generates revenue primarily from its wire segment, amounting to ₩3.42 billion. The company's market cap stands at ₩2.09 trillion.

Taihan Cable & Solution has seen its debt to equity ratio drop significantly from 203.6% to 30.2% in the past five years, indicating improved financial health. Earnings surged by 127%, outpacing the Electrical industry’s growth of 18.5%. The company reported second-quarter net income of KRW 24,879 million, up from KRW 12,816 million a year ago. Basic earnings per share also increased to KRW 134 from KRW 104 last year, reflecting strong operational performance and profitability improvements.

• Dive into the specifics of Taihan Cable & Solution here with our thorough health report.

• Explore historical data to track Taihan Cable & Solution's performance over time in our Past section.

Turning Ideas Into Actions

• Explore the 154 names from our KRX Undiscovered Gems With Strong Fundamentals screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready For A Different Approach?

• 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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