Unveiling 3 Undiscovered Gems in South Korea with Solid Financials

Over the last 7 days, the South Korean market has dropped 1.4%, and over the last 12 months, it has remained flat overall. Despite this, earnings are expected to grow by 30% per annum over the next few years, making it an opportune time to explore stocks with solid financials that may be flying under the radar.

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%	★★★★★★
Samyang	49.49%	6.68%	23.96%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.74%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Namuga	14.47%	0.88%	38.25%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
ONEJOON	10.13%	35.30%	-5.78%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
Itcen	64.57%	14.33%	-24.39%	★★★★★☆

Click here to see the full list of 186 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Sammok S-FormLtd (KOSDAQ:A018310)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sammok S-Form Co., Ltd manufactures, sells, and leases formwork for construction and civil engineering projects both in South Korea and internationally, with a market cap of ₩398.10 billion.

Operations: Sammok S-Form Co., Ltd generates revenue primarily from the manufacture, sale, and lease of formwork for construction and civil engineering projects, with structural metal products manufacturing contributing ₩457.90 billion. The company has a market cap of ₩398.10 billion.

Sammok S-FormLtd, a small South Korean player in the building industry, has shown impressive growth with earnings surging 75% over the past year, outpacing the industry's 28.5%. The company is trading at about 10% below its estimated fair value, indicating potential undervaluation. Financially sound with more cash than total debt and interest payments well-covered by profits, Sammok's high-quality earnings highlight its robust performance and promising outlook in a competitive market.

• Delve into the full analysis health report here for a deeper understanding of Sammok S-FormLtd.

• Evaluate Sammok S-FormLtd's historical performance by accessing our past performance report.

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 ₩972.46 billion.

Operations: The primary revenue stream for PSK HOLDINGS comes from its semiconductor manufacturing equipment segment, generating ₩132.98 billion.

PSK Holdings, a nimble player in the semiconductor industry, has demonstrated impressive earnings growth of 40.8% over the past year, outpacing the sector's -10%. Despite a volatile share price recently, its financial health appears robust with more cash than total debt and positive free cash flow. However, shareholders faced dilution last year. A notable ₩26.4 billion one-off gain influenced recent results. Recently added to the S&P Global BMI Index, future earnings are projected to grow by 20.74% annually.

• Take a closer look at PSK HOLDINGS' potential here in our health report.

• Gain insights into PSK HOLDINGS' past trends and performance with our Past report.

TaesungLtd (KOSDAQ:A323280)

Simply Wall St Value Rating: ★★★★★☆

Overview: Taesung Co., Ltd. is engaged in the development, manufacturing, and sale of PCB automation equipment both domestically and internationally, with a market capitalization of ₩743.64 billion.

Operations: Taesung generates revenue primarily from the manufacturing and sale of PCB automation equipment, amounting to ₩45.68 billion.

Taesung Ltd., a small player in the semiconductor sector, has demonstrated remarkable earnings growth of 1482% over the past year, outpacing the industry's -10%. The company's net debt to equity ratio stands at a satisfactory 4.2%, indicating prudent financial management. Despite recent shareholder dilution, Taesung's high-quality earnings and strong interest coverage of 17.5 times EBIT highlight its robust operational performance. Recently added to the S&P Global BMI Index, it remains highly volatile yet promising for investors seeking dynamic opportunities in South Korea.

• Dive into the specifics of TaesungLtd here with our thorough health report.

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

Turning Ideas Into Actions

• Get an in-depth perspective on all 186 KRX Undiscovered Gems With Strong Fundamentals by using our screener here.
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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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