Undiscovered Gems in South Korea for August 2024

Over the last 7 days, the South Korean market has remained flat, though it is up 3.4% over the past year with earnings forecast to grow by 29% annually. In this environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding for investors seeking undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
Miwon Chemicals	0.16%	12.04%	14.03%	★★★★★★
ASIA Holdings	34.13%	8.28%	15.67%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Kyung Dong Navien	26.97%	11.54%	19.49%	★★★★★★
Kyungdong Invest	8.15%	3.08%	15.07%	★★★★★★
BIO-FD&CLtd	2.01%	8.27%	22.82%	★★★★★★
Daewon Cable	24.70%	8.50%	62.14%	★★★★★☆
Ubiquoss Holdings	2.69%	9.93%	14.22%	★★★★★☆
EASY BIOInc	188.46%	15.71%	55.75%	★★★★☆☆

Click here to see the full list of 207 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 ₩391.89 billion.

Operations: HB SOLUTION generates revenue primarily from its analytical solutions for semiconductors, flat panel displays, and electronic materials. The company has a market cap of ₩391.89 billion.

HB Solution, a small cap player in South Korea's tech sector, has shown promising financial metrics. Its debt to equity ratio improved significantly from 55.4% to 4.6% over the past five years, indicating stronger financial health. The company’s earnings growth of 102.1% last year outpaced the semiconductor industry's -23.3%, suggesting robust performance despite industry challenges. Additionally, its price-to-earnings ratio stands at an attractive 4.3x compared to the KR market average of 12.2x.

• Take a closer look at HB SOLUTION's potential here in our 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 ₩580.24 billion.

Operations: Heung-A Shipping Co., Ltd. generates revenue primarily through its marine shipping services in Korea and internationally. The company has a market cap of ₩580.24 billion.

Heung-A Shipping Ltd. has shown resilience with a 5.9% earnings growth over the past year, outpacing the shipping industry's -66%. The company reported first-quarter sales of ₩43.52B and net income of ₩4.43B, down from ₩7.28B a year ago, partly due to a large one-off gain of ₩12.3B impacting recent results. With more cash than total debt and positive free cash flow, Heung-A appears financially robust despite some fluctuations in earnings per share (₩18 vs ₩30).

• Delve into the full analysis health report here for a deeper understanding of Heung-A ShippingLtd.

• Gain insights into Heung-A ShippingLtd's past trends and performance with our Past report.

Hanil Cement (KOSE:A300720)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hanil Cement Co., Ltd. produces and sells cements, ready-mixed concretes, and admixtures, with a market cap of ₩1.01 trillion.

Operations: Hanil Cement generates revenue primarily from its Cement Sector (₩917.01 billion), Ready-Mixed Concrete Sector (₩294.82 billion), and Remital Sector (₩493.88 billion).

Hanil Cement, a small cap player in South Korea, has shown impressive earnings growth of 90.7% over the past year, outperforming the Basic Materials industry average of 20%. The company repurchased shares in 2024 and trades at 70.2% below its estimated fair value. With a net debt to equity ratio of 20.8%, Hanil Cement's debt level is satisfactory, and its EBIT covers interest payments by 14.5 times.

• Click to explore a detailed breakdown of our findings in Hanil Cement's health report.

• Learn about Hanil Cement's historical performance.

Where To Now?

• Access the full spectrum of 207 KRX Undiscovered Gems With Strong Fundamentals by clicking on this link.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Want To Explore Some Alternatives?

• 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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