Undiscovered Gems in South Korea to Watch This September 2024

The South Korea stock market has finished lower in two straight sessions, plunging more than 100 points or 3.9 percent along the way. The KOSPI now rests just above the 2,580-point plateau although it may see mild support on Thursday. In such a volatile environment, identifying promising small-cap stocks can be challenging yet rewarding for investors who focus on strong fundamentals and growth potential. Here are three undiscovered gems in South Korea to watch this September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Airport ServiceLtd	NA	3.97%	42.22%	★★★★★★
NOROO PAINT & COATINGS	13.99%	5.04%	7.98%	★★★★★★
Samyang	49.49%	6.68%	23.96%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Kyung Dong Navien	22.40%	11.19%	18.84%	★★★★★★
Namuga	14.47%	0.88%	38.25%	★★★★★★
Synergy Innovation	12.39%	12.87%	28.82%	★★★★★★
iMarketKorea	28.53%	5.35%	1.30%	★★★★★☆
ASIA Holdings	34.98%	8.43%	16.17%	★★★★★☆
Oriental Precision & EngineeringLtd	54.53%	3.14%	0.80%	★★★★★☆

Click here to see the full list of 189 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

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

Woori Technology (KOSDAQ:A032820)

Simply Wall St Value Rating: ★★★★★☆

Overview: Woori Technology, Inc. manufactures and sells switchboard and electric control panels, with a market cap of ₩366.96 billion.

Operations: Woori Technology generates revenue primarily from the manufacture and sale of switchboards and electric control panels, amounting to ₩59.99 billion, with additional income from rental (₩3.31 billion), service sales (₩2.65 billion), and product sales (₩2.40 billion).

Woori Technology has shown impressive earnings growth of 136.3% over the past year, significantly outpacing the Electronic industry's 0.2%. Despite this, it carries a high net debt to equity ratio of 50.6%, though this has improved from 141.9% over five years. Recently, Woori completed a private placement for KRW 10 billion in zero-coupon convertible bonds due in August 2029, indicating strong investor confidence despite its volatile share price and high debt levels.

• Click here to discover the nuances of Woori Technology with our detailed analytical health report.

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

Korea Electric Power Industrial Development (KOSE:A130660)

Simply Wall St Value Rating: ★★★★★★

Overview: Korea Electric Power Industrial Development Co., Ltd. (KOSE:A130660) operates in the electric power generation service sector with a market cap of ₩512.80 billion.

Operations: The company generates revenue primarily from electric power generation services, amounting to ₩373.29 billion.

Korea Electric Power Industrial Development, a small-cap player in the electric utilities sector, has shown notable performance. Earnings grew by 26.8% over the past year, surpassing industry growth of 4.6%. The company reported second-quarter net income of KRW 10.89 million compared to KRW 8.35 million last year and basic earnings per share increased from KRW 256 to KRW 334. Additionally, its debt-to-equity ratio improved from 10.7% to 6.2% over five years, indicating better financial health.

• Get an in-depth perspective on Korea Electric Power Industrial Development's performance by reading our health report here.

• Gain insights into Korea Electric Power Industrial Development's past trends and performance with our Past report.

Cuckoo Holdings (KOSE:A192400)

Simply Wall St Value Rating: ★★★★★☆

Overview: Cuckoo Holdings Co., Ltd., along with its subsidiaries, manufactures and sells electric heaters and daily necessities in South Korea and internationally, with a market cap of ₩766.08 billion.

Operations: Cuckoo Holdings generates revenue primarily from the sale of electric heaters and daily necessities. The company operates both domestically in South Korea and internationally.

Cuckoo Holdings, a notable player in South Korea's consumer durables sector, has shown consistent earnings growth of 8.8% annually over the past five years. Despite trading at 79.2% below its estimated fair value, it boasts high-quality past earnings and remains profitable with no cash runway concerns. The debt-to-equity ratio has slightly risen to 0.04%, but the company holds more cash than total debt, ensuring interest coverage is not an issue.

• Delve into the full analysis health report here for a deeper understanding of Cuckoo Holdings.

• Gain insights into Cuckoo Holdings' historical performance by reviewing our past performance report.

Summing It All Up

• Unlock more gems! Our KRX Undiscovered Gems With Strong Fundamentals screener has unearthed 186 more companies for you to explore.Click here to unveil our expertly curated list of 189 KRX Undiscovered Gems With Strong Fundamentals.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready To Venture Into Other Investment Styles?

• 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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