Undiscovered Gems in South Korea to Watch This August 2024

The South Korea stock market has ticked lower in back-to-back sessions, slipping almost 10 points or 0.4 percent along the way. The KOSPI now rests just beneath the 2,700-point plateau and may take further damage again on Tuesday amid mixed global forecasts and profit-taking following recent optimism over interest rates. In this fluctuating market environment, identifying promising small-cap stocks requires a keen eye for companies with strong fundamentals and growth potential. Here are three undiscovered gems in South Korea to watch this August 2024.

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	1.97%	8.84%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.98%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.38%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆

Click here to see the full list of 199 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

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

TaesungLtd (KOSDAQ:A323280)

Simply Wall St Value Rating: ★★★★★☆

Overview: Taesung Co., Ltd. develops, manufactures, and sells PCB automation equipment in South Korea and internationally with a market cap of ₩446.54 billion.

Operations: Revenue for Taesung Ltd. primarily comes from manufacturing and selling PCB automation equipment, amounting to ₩45.68 billion.

Taesung Ltd. has shown remarkable earnings growth of 1482.3% over the past year, outpacing the Semiconductor industry's -13.8%. The company's net debt to equity ratio stands at a satisfactory 4.2%, indicating prudent financial management. Interest payments are well covered by EBIT with a 17.5x coverage, reflecting strong operational efficiency despite recent shareholder dilution and volatile share prices in the past three months.

• Click to explore a detailed breakdown of our findings in TaesungLtd's health report.

• Explore historical data to track TaesungLtd's performance over time in our Past section.

Hyundai G.F. Holdings (KOSE:A005440)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hyundai G.F. Holdings Co., Ltd. operates in the rental and investment sectors with a market cap of ₩750.68 billion.

Operations: Hyundai G.F. Holdings generates revenue primarily from its rental and investment activities, with a market cap of ₩750.68 billion.

Hyundai G.F. Holdings, a small cap entity, has shown impressive earnings growth of 242291% over the past year, significantly outpacing the Trade Distributors industry average of 9.1%. Trading at 75.3% below its estimated fair value, Hyundai also boasts high-quality non-cash earnings and maintains more cash than its total debt. The company's debt to equity ratio has increased from 1.6 to 10.7 over five years, indicating rising leverage but manageable interest coverage due to profitability.

• Delve into the full analysis health report here for a deeper understanding of Hyundai G.F. Holdings.

• Gain insights into Hyundai G.F. Holdings' past trends and performance with our Past report.

Hanil Cement (KOSE:A300720)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hanil Cement Co., Ltd. produces and sells cement, ready-mixed concrete, and admixtures, with a market cap of ₩1.06 trillion.

Operations: Hanil Cement generates revenue primarily from the production and sale of cement, ready-mixed concrete, and admixtures.

Hanil Cement, a small-cap player in South Korea's construction sector, has been trading at 12.5% below its estimated fair value. Over the past year, its earnings surged by 74.7%, significantly outpacing the Basic Materials industry’s 7.2%. The company's debt situation is satisfactory with a net debt to equity ratio of 23.7%, and interest payments are well covered by EBIT at 15.2x coverage. Future earnings are projected to grow annually by around 5.63%.

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

• Gain insights into Hanil Cement's historical performance by reviewing our past performance report.

Taking Advantage

• Click this link to deep-dive into the 199 companies within our KRX Undiscovered Gems With Strong Fundamentals screener.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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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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