Stock Analysis

Sang-A FrontecLtd And 2 Other Undiscovered Gems In South Korea

KOSE:A003470
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The South Korean market has shown robust growth, with a 7.2% increase over the past year and earnings expected to grow by 30% annually. In such a thriving environment, stocks like Sang-A Frontec Ltd that are not yet widely recognized may present unique opportunities for growth-oriented investors.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Samyang47.03%6.61%22.07%★★★★★★
Korea Airport ServiceLtdNA0.40%27.17%★★★★★★
NOROO PAINT & COATINGS17.16%5.11%6.31%★★★★★★
ASIA Holdings34.13%8.28%15.67%★★★★★★
Oriental Precision & EngineeringLtd59.19%3.54%5.92%★★★★★★
Kyungdong Invest8.15%3.08%15.07%★★★★★★
KG Chemical43.62%33.46%8.39%★★★★★☆
Daewon Cable24.70%8.50%62.14%★★★★★☆
Ubiquoss Holdings2.69%9.93%14.22%★★★★★☆
EASY BIOInc188.46%15.71%55.75%★★★★☆☆

Click here to see the full list of 210 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

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

Sang-A FrontecLtd (KOSDAQ:A089980)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sang-A Frontec Co., Ltd. is a company focused on the R&D, production, and sale of materials and parts derived from engineering plastics, operating both in South Korea and globally, with a market capitalization of approximately ₩414.71 billion.

Operations: Sang-A Frontec Ltd generates its revenue primarily through the sale of products and services, with a gross profit margin of 19.34% as of the latest reporting period in 2024. The company's operating expenses are significant, impacting its net income margin, which stood at approximately 6.09% in mid-2024.

Sang-A Frontec Ltd. stands out with its robust performance in the electronics sector, surpassing industry growth with a 40.5% earnings increase over the past year while the sector saw a 7.3% decline. With earnings projected to grow by 37.76% annually, and a net debt-to-equity ratio at a healthy 28.4%, the company demonstrates financial prudence and growth potential. Additionally, its high-quality earnings underscore operational efficiency, making it an intriguing prospect for investors exploring opportunities beyond mainstream picks in South Korea.

KOSDAQ:A089980 Debt to Equity as at Jul 2024
KOSDAQ:A089980 Debt to Equity as at Jul 2024

Sang-A FrontecLtd (KOSDAQ:A089980)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Sang-A Frontec Co., Ltd. is a company focused on the R&D, production, and sale of materials and parts derived from engineering plastics, operating both in South Korea and globally, with a market capitalization of approximately ₩414.71 billion.

Operations: Sang-A Frontec Ltd generates its revenue primarily through the sale of products and services, with a gross profit margin of 19.34% as of the latest reporting period in 2024. The company's operating expenses are significant, impacting its net income margin, which stood at approximately 6.09% in mid-2024.

Sang-A Frontec Ltd. stands out with its robust performance in the electronics sector, surpassing industry growth with a 40.5% earnings increase over the past year while the sector saw a 7.3% decline. With earnings projected to grow by 37.76% annually, and a net debt-to-equity ratio at a healthy 28.4%, the company demonstrates financial prudence and growth potential. Additionally, its high-quality earnings underscore operational efficiency, making it an intriguing prospect for investors exploring opportunities beyond mainstream picks in South Korea.

KOSDAQ:A089980 Debt to Equity as at Jul 2024
KOSDAQ:A089980 Debt to Equity as at Jul 2024

ASICLAND (KOSDAQ:A445090)

Simply Wall St Value Rating: ★★★★☆☆

Overview: ASICLAND Co., Ltd. is a South Korean company specializing in the design of application-specific integrated circuits, with a market capitalization of ₩536.06 billion.

Operations: The company generates its revenue primarily from the semiconductor sector, with a notable increase in gross profit margin from 17.62% in 2021 to 22.42% by mid-2024, reflecting enhanced operational efficiency. This growth is supported by a consistent rise in annual revenues, reaching ₩75.95 billion by the first half of 2024.

ASICLAND, a lesser-known entity in South Korea's semiconductor sector, has demonstrated remarkable financial agility with a 14% earnings growth over the past year, significantly outpacing the industry's 25.9% contraction. With more cash than debt on its books and a highly volatile share price in recent months, ASICLAND appears poised for intriguing developments. Despite not generating positive free cash flow recently, its ability to cover interest payments suggests prudent financial management.

KOSDAQ:A445090 Debt to Equity as at Jul 2024
KOSDAQ:A445090 Debt to Equity as at Jul 2024

ASICLAND (KOSDAQ:A445090)

Simply Wall St Value Rating: ★★★★☆☆

Overview: ASICLAND Co., Ltd. is a South Korean company specializing in the design of application-specific integrated circuits, with a market capitalization of ₩536.06 billion.

Operations: The company generates its revenue primarily from the semiconductor sector, with a notable increase in gross profit margin from 17.62% in 2021 to 22.42% by mid-2024, reflecting enhanced operational efficiency. This growth is supported by a consistent rise in annual revenues, reaching ₩75.95 billion by the first half of 2024.

ASICLAND, a lesser-known entity in South Korea's semiconductor sector, has demonstrated remarkable financial agility with a 14% earnings growth over the past year, significantly outpacing the industry's 25.9% contraction. With more cash than debt on its books and a highly volatile share price in recent months, ASICLAND appears poised for intriguing developments. Despite not generating positive free cash flow recently, its ability to cover interest payments suggests prudent financial management.

KOSDAQ:A445090 Debt to Equity as at Jul 2024
KOSDAQ:A445090 Debt to Equity as at Jul 2024

Yuanta Securities Korea (KOSE:A003470)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Yuanta Securities Korea Co., Ltd. operates as a financial services provider, offering a range of services both domestically in South Korea and internationally, with a market capitalization of approximately ₩633.11 billion.

Operations: Yuanta Securities Korea generates its revenue primarily from financial trading and related services, consistently exhibiting a high gross profit margin averaging around 97.5% over recent periods. The company's operational costs are dominated by general and administrative expenses, which form a significant portion of its operating expenses.

Yuanta Securities Korea, an often overlooked player in the capital markets sector, has demonstrated robust performance with a 24.2% earnings growth over the past year, surpassing the industry average of 0.8%. Despite a challenging five-year period where earnings declined by 11.7% annually, its debt-to-equity ratio improved from 487% to 482.3%. The firm's price-to-earnings ratio stands at an appealing 10.7x compared to the market's 12.7x, signaling potential undervaluation. Recently, Yuanta faced regulatory fines but promptly addressed these issues with a voluntary payment plan.

KOSE:A003470 Earnings and Revenue Growth as at Jul 2024
KOSE:A003470 Earnings and Revenue Growth as at Jul 2024

Yuanta Securities Korea (KOSE:A003470)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Yuanta Securities Korea Co., Ltd. operates as a financial services provider, offering a range of services both domestically in South Korea and internationally, with a market capitalization of approximately ₩633.11 billion.

Operations: Yuanta Securities Korea generates its revenue primarily from financial trading and related services, consistently exhibiting a high gross profit margin averaging around 97.5% over recent periods. The company's operational costs are dominated by general and administrative expenses, which form a significant portion of its operating expenses.

Yuanta Securities Korea, an often overlooked player in the capital markets sector, has demonstrated robust performance with a 24.2% earnings growth over the past year, surpassing the industry average of 0.8%. Despite a challenging five-year period where earnings declined by 11.7% annually, its debt-to-equity ratio improved from 487% to 482.3%. The firm's price-to-earnings ratio stands at an appealing 10.7x compared to the market's 12.7x, signaling potential undervaluation. Recently, Yuanta faced regulatory fines but promptly addressed these issues with a voluntary payment plan.

KOSE:A003470 Earnings and Revenue Growth as at Jul 2024
KOSE:A003470 Earnings and Revenue Growth as at Jul 2024

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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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