Undiscovered Gems In South Korea To Watch This September 2024

The South Korean market is up 2.5% in the last 7 days, with all sectors gaining ground, though it has remained flat over the past 12 months. With earnings forecast to grow by 29% annually, identifying promising stocks that are still under the radar can be a strategic move for investors looking to capitalize on this momentum.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Samyang	49.49%	6.68%	23.96%	★★★★★★
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
Miwon Chemicals	0.08%	11.70%	14.38%	★★★★★★
Korea Ratings	NA	1.13%	0.54%	★★★★★★
Woori Technology Investment	NA	25.66%	-1.45%	★★★★★★
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Daewon Cable	30.50%	8.72%	60.28%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆
FnGuide	36.10%	8.92%	10.27%	★★★★☆☆

Click here to see the full list of 190 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

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

Cheryong ElectricLtd (KOSDAQ:A033100)

Simply Wall St Value Rating: ★★★★★★

Overview: Cheryong Electric Co., Ltd. manufactures and sells power electric equipment in South Korea with a market cap of ₩963.74 billion.

Operations: Cheryong Electric Co., Ltd. generates revenue through the sale of power electric equipment in South Korea, contributing to its market cap of ₩963.74 billion.

Cheryong Electric Ltd. stands out with its impressive earnings growth of 134% over the past year, far surpassing the Electrical industry average of 25.5%. Trading at 79.7% below estimated fair value, it offers significant potential for investors. The company is debt-free, a notable improvement from a debt-to-equity ratio of 2.3% five years ago. Despite recent share price volatility, Cheryong remains profitable and boasts high-quality earnings, making it an intriguing prospect in South Korea's market landscape.

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

• Understand Cheryong ElectricLtd's track record by examining our Past report.

BusinessOn Communication (KOSDAQ:A138580)

Simply Wall St Value Rating: ★★★★★☆

Overview: BusinessOn Communication Co., Ltd, with a market cap of ₩356.04 billion, operates in South Korea's software application development industry.

Operations: BusinessOn Communication Co., Ltd generates revenue primarily from its software application development activities in South Korea. The company has a market cap of ₩356.04 billion.

BusinessOn Communication has shown impressive earnings growth of 99.4% over the past year, significantly outpacing the software industry’s 27.1%. The company is forecasted to see a revenue increase of 15.73% annually despite an expected average earnings decline of 5.3% per year over the next three years. Recent acquisition activity includes Skylake Longterm Strategic Investment III Limited acquiring a majority stake for approximately KRW 250 billion, valuing shares at KRW 15,849 each.

• Click here to discover the nuances of BusinessOn Communication with our detailed analytical health report.

• Examine BusinessOn Communication's past performance report to understand how it has performed in the past.

Korea Electric Terminal (KOSE:A025540)

Simply Wall St Value Rating: ★★★★★☆

Overview: Korea Electric Terminal Co., Ltd. manufactures and sells parts for automotive and electronics in South Korea and internationally, with a market cap of ₩726.18 billion.

Operations: Korea Electric Terminal Co., Ltd. generates revenue primarily from its Automotive and Electronics sector, amounting to ₩1.39 billion.

Korea Electric Terminal, a small-cap player in the electrical components sector, has shown impressive growth with earnings increasing by 89% over the past year. The company repurchased shares in 2024, indicating confidence in its future. Trading at 95% below estimated fair value and boasting high-quality earnings, it seems well-positioned for continued success. Additionally, its debt-to-equity ratio rose from 1.9 to 14.7 over five years but remains manageable with strong EBIT coverage of interest payments (111x).

• Navigate through the intricacies of Korea Electric Terminal with our comprehensive health report here.

• Learn about Korea Electric Terminal's historical performance.

Key Takeaways

• Click through to start exploring the rest of the 187 KRX Undiscovered Gems With Strong Fundamentals now.
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Contemplating Other Strategies?

• 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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