Undiscovered Gems in South Korea to Watch This August 2024

Over the last 7 days, the South Korean market has risen 3.1%, driven by gains in every sector, although it has remained flat over the past 12 months. As earnings are forecast to grow by 28% annually, identifying promising stocks with strong growth potential is crucial for capitalizing on these favorable conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
Korea Ratings	NA	1.74%	0.87%	★★★★★★
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
ASIA Holdings	34.13%	8.28%	15.67%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Kyungdong Invest	8.15%	3.08%	15.07%	★★★★★★
SELVAS Healthcare	13.58%	10.16%	77.14%	★★★★★★
KG Chemical	43.62%	33.46%	8.39%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆
Kwang Dong Pharmaceutical	40.57%	5.48%	4.75%	★★★★☆☆

Click here to see the full list of 203 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

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 ₩1.11 billion.

Operations: PSK HOLDINGS generates revenue primarily from its semiconductor manufacturing equipment segment, which brought in ₩117.90 billion.

PSK Holdings, a small-cap entity in South Korea, has shown impressive earnings growth of 16.4% over the past year, outperforming the semiconductor industry's -21.3%. The company reported a significant one-off gain of ₩18.9B impacting its financials for the last 12 months ending March 31, 2024. Despite a volatile share price recently, PSK remains free cash flow positive and forecasts suggest earnings could grow by an annual rate of 23.41%.

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

• Understand PSK HOLDINGS' track record by examining our Past report.

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 ₩423.29 billion.

Operations: Taesung Ltd. generates revenue by developing and selling PCB automation equipment, with a market cap of ₩423.29 billion. The company's cost structure includes manufacturing expenses and operational costs, impacting its profitability metrics such as net profit margin.

Taesung Ltd., a small cap player in South Korea, has shown impressive growth with earnings surging by 1482.3% over the past year, outperforming the Semiconductor industry which saw a -21.3% decline. The company's net debt to equity ratio stands at a satisfactory 4.2%, indicating prudent financial management. Despite high quality earnings and well-covered interest payments (17.5x EBIT), shareholders experienced dilution last year, reflecting potential capital raising activities amidst volatile share prices recently.

• Take a closer look at TaesungLtd's potential here in our health report.

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

Kyung Dong Navien (KOSE:A009450)

Simply Wall St Value Rating: ★★★★★★

Overview: Kyung Dong Navien Co., Ltd. manufactures and sells machinery and heat combustion equipment in South Korea, with a market cap of ₩943.78 billion.

Operations: Kyung Dong Navien generates revenue primarily from the sale of machinery and heat combustion equipment. The company has a market cap of ₩943.78 billion.

Kyung Dong Navien, a small-cap player in the heating and water solutions industry, has shown impressive earnings growth of 27.8% over the past year, outpacing the building industry's 16.2%. The company’s debt to equity ratio improved from 41.6% to 27% over five years, reflecting prudent financial management. With a price-to-earnings ratio of 11.3x below the KR market average of 11.7x and EBIT covering interest payments by 20.1 times, Kyung Dong Navien demonstrates solid financial health and value potential for investors looking at South Korea's emerging stocks.

• Delve into the full analysis health report here for a deeper understanding of Kyung Dong Navien.

• Review our historical performance report to gain insights into Kyung Dong Navien's's past performance.

Make It Happen

• Take a closer look at our KRX Undiscovered Gems With Strong Fundamentals list of 203 companies by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Looking For Alternative Opportunities?

• 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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