Stock Analysis

KRX: 3 Stocks Trading At Estimated Discounts Up To 44.9%

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Over the last 7 days, the South Korean market has dropped 8.1%, and it is also down 4.2% over the past year, despite earnings being expected to grow by 28% per annum over the next few years. In this context, identifying stocks that are trading at estimated discounts can offer potential value opportunities for investors looking to capitalize on future growth prospects.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

NameCurrent PriceFair Value (Est)Discount (Est)
Samyang Foods (KOSE:A003230)₩590000.00₩1086674.0245.7%
HANMI Semiconductor (KOSE:A042700)₩107900.00₩196871.3445.2%
JUSUNG ENGINEERINGLtd (KOSDAQ:A036930)₩25850.00₩49239.8747.5%
Global Tax Free (KOSDAQ:A204620)₩3730.00₩6864.4145.7%
JNTC (KOSDAQ:A204270)₩18960.00₩34419.8244.9%
Jeisys Medical (KOSDAQ:A287410)₩12930.00₩23846.8645.8%
SK Biopharmaceuticals (KOSE:A326030)₩85500.00₩170336.8949.8%
ABCO Electronics (KOSDAQ:A036010)₩6140.00₩11593.7447%
Shinsung E&GLtd (KOSE:A011930)₩1668.00₩3016.5344.7%
ADTechnologyLtd (KOSDAQ:A200710)₩18000.00₩32773.2945.1%

Click here to see the full list of 41 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

JNTC (KOSDAQ:A204270)

Overview: JNTC Co., Ltd. operates in South Korea, offering connector, hinge, and tempered glass products with a market cap of ₩1.08 trillion.

Operations: Revenue from the manufacturing and sales of mobile parts for JNTC Co., Ltd. amounts to ₩393.20 billion.

Estimated Discount To Fair Value: 44.9%

JNTC is trading at ₩18,960, significantly below its estimated fair value of ₩34,419.82. The company recently became profitable and is forecast to grow earnings by 28.64% annually over the next three years, outpacing the South Korean market's growth rate of 28.1%. Revenue is also expected to increase by 20.2% per year, faster than the market's 9.9%. However, JNTC has experienced high share price volatility recently.

KOSDAQ:A204270 Discounted Cash Flow as at Aug 2024

VIOL (KOSDAQ:A335890)

Overview: Viol Co., Ltd. manufactures electrical diagnostics and medical devices, with a market cap of ₩550.29 billion.

Operations: The company's revenue segment primarily focuses on the Medical Device Business, generating ₩35.49 billion.

Estimated Discount To Fair Value: 41.2%

VIOL is trading at ₩9,530, well below its estimated fair value of ₩16,193.91. Despite recent share price volatility, the company has shown strong earnings growth of 162.2% over the past year and is forecast to grow earnings by 30.61% annually over the next three years, outpacing the South Korean market's growth rate of 28.1%. Revenue is also expected to grow significantly faster than the market at 29.1% per year.

KOSDAQ:A335890 Discounted Cash Flow as at Aug 2024

HYBE (KOSE:A352820)

Overview: HYBE Co., Ltd. operates in music production, publishing, and artist development and management with a market cap of ₩7.56 trillion.

Operations: HYBE Co., Ltd. generates revenue from music production, publishing, and artist development and management businesses.

Estimated Discount To Fair Value: 29.8%

HYBE is trading at ₩181,500, significantly below its estimated fair value of ₩258,399.72. Despite a recent decline in Q1 2024 earnings and revenue, the company's annual profit growth is forecasted to be 29.6%, outpacing the South Korean market's 28.1%. Revenue growth is expected at 13.2% annually, higher than the market's 9.9%. Analysts agree on a potential stock price increase of 47%, reflecting its undervaluation based on cash flows.

KOSE:A352820 Discounted Cash Flow as at Aug 2024

Taking Advantage

  • Embark on your investment journey to our 41 Undervalued KRX Stocks Based On Cash Flows selection here.
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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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