Undiscovered Gems In South Korea To Watch This August 2024

Over the last 7 days, the South Korean market has risen 3.6%, although it has remained flat over the past 12 months. With earnings forecasted to grow by 28% annually, identifying promising stocks that are currently underappreciated could yield significant potential for investors.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Airport ServiceLtd	NA	0.40%	27.17%	★★★★★★
Samyang	47.03%	6.61%	22.07%	★★★★★★
NOROO PAINT & COATINGS	17.16%	5.11%	6.31%	★★★★★★
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
Kyung Dong Navien	26.97%	11.54%	19.49%	★★★★★★
Kyungdong Invest	8.15%	3.08%	15.07%	★★★★★★
Oriental Precision & EngineeringLtd	59.19%	3.54%	5.92%	★★★★★★
SELVAS Healthcare	13.58%	10.16%	77.14%	★★★★★★
Hansae Yes24 Holdings	97.82%	2.74%	18.89%	★★★★★☆
Daewon Cable	24.70%	8.50%	62.14%	★★★★★☆

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

Below we spotlight a couple of our favorites from our exclusive 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 trillion.

Operations: PSK HOLDINGS generates revenue primarily from its semiconductor manufacturing equipment segment, which recorded ₩117.90 billion. The company has a market cap of ₩1.11 trillion.

PSK Holdings, a small-cap player in South Korea, has shown robust earnings growth of 16.4% over the past year, outperforming the semiconductor industry’s -21.3%. The company repurchased shares in 2024 and boasts a net profit margin of 23%. Despite its highly volatile share price over the last three months, PSK Holdings' debt to equity ratio increased from 0.2% to 6.3% in five years but remains manageable with more cash than total debt on hand.

• Click here and access our complete health analysis report to understand the dynamics of PSK HOLDINGS.

• Examine PSK HOLDINGS' past performance report to understand how it has performed in the past.

Creative & Innovative System (KOSDAQ:A222080)

Simply Wall St Value Rating: ★★★★★☆

Overview: Creative & Innovative System Corporation manufactures and sells equipment for lithium-ion batteries used in IT instruments, EVs, fuel cells, solar cells, and displays, with a market cap of approximately ₩766.79 billion.

Operations: Creative & Innovative System Corporation generates revenue primarily from the sale of equipment for lithium-ion batteries across various applications including IT instruments, EVs, fuel cells, solar cells, and displays. The company's net profit margin stands at 12.5%.

Creative & Innovative System, a small cap player in South Korea, has shown significant financial improvement. The company’s debt to equity ratio dropped from 45.6% to 2.7% over the past five years. It recently turned profitable and is projected to grow earnings by 4.59% annually. Trading at 62.7% below its estimated fair value, it appears undervalued with strong potential for future gains despite not being free cash flow positive yet this year.

• Dive into the specifics of Creative & Innovative System here with our thorough health report.

• Learn about Creative & Innovative System's historical performance.

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 Co., Ltd. generates revenue primarily from the development, manufacturing, and sale of PCB automation equipment. The company has a market cap of ₩423.29 billion.

Taesung Ltd, a small-cap South Korean company, has shown remarkable earnings growth of 1482.3% over the past year, significantly outpacing the semiconductor industry's -21.3%. Its net debt to equity ratio stands at a satisfactory 4.2%, indicating manageable debt levels. The company's interest payments on its debt are well covered by EBIT with a coverage ratio of 17.5x, reflecting strong financial health despite recent shareholder dilution and volatile share prices over the last three months.

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

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

Summing It All Up

• Discover the full array of 203 KRX Undiscovered Gems With Strong Fundamentals right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Interested In Other Possibilities?

• 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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