HB SOLUTION And 2 Other Undiscovered Gems In South Korea

The South Korea stock market recently ended a two-day winning streak, with the KOSPI index plunging 3.65 percent to finish at 2,676.19 amid global economic slowdown concerns and negative sentiment from Wall Street. Despite these challenges, discerning investors can still uncover promising opportunities within the small-cap sector. In this article, we will explore HB SOLUTION and two other undiscovered gems in South Korea that may offer significant potential for growth even in turbulent times.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
CYMECHS	10.99%	11.45%	3.52%	★★★★★★
Korea Ratings	NA	1.74%	0.87%	★★★★★★
NOROO PAINT & COATINGS	17.16%	5.11%	6.31%	★★★★★★
Miwon Chemicals	0.16%	12.04%	14.03%	★★★★★★
ASIA Holdings	34.13%	8.28%	15.67%	★★★★★★
Oriental Precision & EngineeringLtd	59.19%	3.54%	5.92%	★★★★★★
Daewon Cable	24.70%	8.50%	62.14%	★★★★★☆
KG Chemical	43.62%	33.46%	8.39%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆
Kwang Dong Pharmaceutical	40.57%	5.48%	4.75%	★★★★☆☆

Click here to see the full list of 205 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

HB SOLUTION (KOSDAQ:A297890)

Simply Wall St Value Rating: ★★★★★★

Overview: HB SOLUTION Co., Ltd. develops and supplies analytical solutions for semiconductors, flat panel displays, and electronic materials worldwide, with a market cap of ₩392.62 billion.

Operations: HB SOLUTION generates revenue primarily from its analytical solutions for the semiconductor and flat panel display industries. The company's cost structure includes expenditures related to research, development, and production of these solutions.

HB SOLUTION, a small cap in South Korea, has shown remarkable growth with earnings surging by 102% over the past year. Its price-to-earnings ratio stands at 4.3x, significantly lower than the KR market average of 11.9x, suggesting good value. The company's debt to equity ratio has impressively reduced from 55% to just under 5% over five years. Despite a highly volatile share price in recent months, it boasts more cash than total debt and is profitable enough that its cash runway isn't a concern.

• Unlock comprehensive insights into our analysis of HB SOLUTION stock in this health report.

• Review our historical performance report to gain insights into HB SOLUTION's's past performance.

Heung-A ShippingLtd (KOSE:A003280)

Simply Wall St Value Rating: ★★★★★★

Overview: Heung-A Shipping Co., Ltd. operates as a marine shipping agency in Korea and internationally, with a market cap of ₩672.74 billion.

Operations: Heung-A Shipping generates revenue primarily through its marine shipping services both domestically and internationally. The company has a market cap of ₩672.74 billion, reflecting its substantial presence in the industry.

Heung-A Shipping has shown resilience with a 5.9% earnings growth over the past year, outpacing the shipping industry's -66%. The company's debt to equity ratio improved significantly from 325.3% to 6.7% in five years, indicating better financial health. Despite a one-off gain of ₩12.3B impacting recent results, their net income for Q1 2024 was KRW 4,428M compared to KRW 7,284M last year. Basic EPS dropped from KRW 30 to KRW 18 year-over-year.

• Click to explore a detailed breakdown of our findings in Heung-A ShippingLtd's health report.

• Gain insights into Heung-A ShippingLtd's historical performance by reviewing our past performance report.

Dongwon Systems (KOSE:A014820)

Simply Wall St Value Rating: ★★★★★☆

Overview: Dongwon Systems Corporation, a packaging company, manufactures and markets packaging materials in South Korea with a market cap of ₩1.31 billion.

Operations: The company generates revenue primarily from its packaging business, amounting to ₩1.26 billion.

Dongwon Systems, a promising player in South Korea's packaging sector, has shown resilience despite industry challenges. The company's debt to equity ratio improved from 72.3% to 66.4% over five years, indicating better financial management. Though earnings growth was -7%, lower than the industry's -3.8%, future projections are optimistic with a forecasted annual growth rate of 15.27%. Recent results revealed net income of KRW 15,480 million for Q1 2024, up from KRW 12,894 million last year.

• Navigate through the intricacies of Dongwon Systems with our comprehensive health report here.

• Understand Dongwon Systems' track record by examining our Past report.

Summing It All Up

• Access the full spectrum of 205 KRX Undiscovered Gems With Strong Fundamentals by clicking on this link.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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