Discovering Hidden Gems in South Korea This October 2024

The South Korean market has shown a steady upward trend, climbing 1.3% in the past week and 4.1% over the last year, with earnings projected to grow significantly in the coming years. In this promising environment, identifying stocks with strong fundamentals and growth potential can uncover hidden gems that may benefit from these positive market conditions.

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%	★★★★★★
Korea Cast Iron Pipe Ind	NA	1.97%	8.84%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.74%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
Itcen	64.57%	14.33%	-24.39%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆
THINKWARE	36.75%	21.25%	22.92%	★★★★☆☆

Click here to see the full list of 185 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

VT (KOSDAQ:A018290)

Simply Wall St Value Rating: ★★★★★★

Overview: VT Co., Ltd. is a company that specializes in the production and global export of laminating machines and films, with a market cap of ₩1.28 trillion.

Operations: VT Co., Ltd.'s primary revenue streams are from its Cosmetic segment, generating ₩256.27 billion, followed by Entertainment at ₩93.74 billion and Laminating at ₩33.86 billion.

VT has shown impressive growth with earnings surging by 563.7% over the past year, outpacing the industry average of 30.2%. The company reported a significant increase in net income for Q2 2024 at KRW 15.4 billion, up from KRW 5.09 billion a year earlier, and basic earnings per share climbed to KRW 481 from KRW 154. Despite recent shareholder dilution, VT's debt-to-equity ratio improved dramatically from 71.2% to just 22.4% over five years, highlighting strong financial management and positioning it as an intriguing prospect in South Korea's market landscape.

• Navigate through the intricacies of VT with our comprehensive health report here.

• Learn about VT's historical performance.

TaesungLtd (KOSDAQ:A323280)

Simply Wall St Value Rating: ★★★★★☆

Overview: Taesung Co.,Ltd. is a company that specializes in the development, manufacturing, and sale of PCB automation equipment both domestically in South Korea and internationally, with a market capitalization of ₩1.01 billion.

Operations: Taesung generates revenue primarily from manufacturing and selling PCB automation equipment, with reported sales of ₩45.68 billion.

Taesung Ltd., a small yet dynamic player in South Korea's market, has shown remarkable earnings growth of 1482% over the past year, outpacing the Semiconductor industry's -10%. Its net debt to equity ratio stands at a satisfactory 4.2%, and interest payments are well covered with EBIT at 17.5 times coverage. Despite shareholder dilution recently, Taesung's inclusion in the S&P Global BMI Index signals its growing recognition on the global stage.

• Click here to discover the nuances of TaesungLtd with our detailed analytical health report.

• Examine TaesungLtd's past performance report to understand how it has performed in the past.

Dongwon Systems (KOSE:A014820)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Dongwon Systems Corporation is a South Korean packaging company that manufactures and markets packaging materials, with a market cap of ₩1.56 trillion.

Operations: The primary revenue stream for Dongwon Systems comes from its packaging business, generating ₩1.27 trillion.

Dongwon Systems, a noteworthy player in South Korea's packaging sector, showcases robust financial health with its interest payments well covered by EBIT at 5.2 times. Despite a high net debt to equity ratio of 48.4%, the company has reduced this from 69.4% over five years, indicating prudent financial management. Recent earnings reveal growth with net income for Q2 reaching KRW 22 billion, up from KRW 18 billion last year, while basic earnings per share rose to KRW 761 from KRW 612.

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

• Explore historical data to track Dongwon Systems' performance over time in our Past section.

Summing It All Up

• Explore the 185 names from our KRX Undiscovered Gems With Strong Fundamentals screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Curious About Other Options?

• 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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