Undiscovered Gems in South Korea to Watch This August 2024

Over the last 7 days, the South Korean market has dropped 8.1%, and it is down 4.2% over the past year, although earnings are forecast to grow by 28% annually. In this context, identifying promising stocks with strong growth potential becomes crucial for investors looking to capitalize on future opportunities despite recent market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Korea Ratings	NA	1.74%	0.87%	★★★★★★
Korea Airport ServiceLtd	NA	0.40%	27.17%	★★★★★★
Miwon Chemicals	0.16%	12.04%	14.03%	★★★★★★
Korea Cast Iron Pipe Ind	NA	2.58%	14.14%	★★★★★★
NOROO PAINT & COATINGS	17.16%	5.11%	6.31%	★★★★★★
Woori Technology Investment	NA	22.60%	-1.67%	★★★★★★
Kyungdong Invest	8.15%	3.08%	15.07%	★★★★★★
Daewon Cable	24.70%	8.50%	62.14%	★★★★★☆
Kwang Dong Pharmaceutical	40.57%	5.48%	4.75%	★★★★☆☆
EASY BIOInc	188.46%	15.71%	55.75%	★★★★☆☆

Click here to see the full list of 193 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

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 ₩712.39 billion.

Operations: Heung-A Shipping Co., Ltd. generates revenue through its marine shipping services in Korea and internationally, with a market cap of ₩712.39 billion.

Heung-A Shipping Ltd. has shown significant improvement, reducing its debt to equity ratio from 325.3% to 6.7% over the past five years, and earnings growth of 5.9% last year outpaced the shipping industry's -66%. Despite a large one-off gain of ₩12.3 billion impacting recent financial results, net income for Q1 2024 was KRW 4,428.56 million compared to KRW 7,283.58 million a year ago, with basic earnings per share dropping from KRW 30 to KRW 18.

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

• Learn about Heung-A ShippingLtd's historical performance.

Snt DynamicsLtd (KOSE:A003570)

Simply Wall St Value Rating: ★★★★★★

Overview: Snt Dynamics Co., Ltd. manufactures and sells precision machinery and has a market cap of ₩502.74 billion.

Operations: Snt Dynamics generates revenue primarily from its Machinery Business and Transportation Equipment Business, with the latter contributing ₩508.92 billion. The company has a net profit margin of 3.45%.

Snt Dynamics Ltd. has shown impressive financial performance, with earnings growing by 79.1% over the past year, surpassing the Aerospace & Defense industry average. The company reported a net income of KRW 12,880 million for Q1 2024 compared to KRW 10,865 million a year ago. Trading at approximately 52.7% below its estimated fair value and being debt-free for five years highlights its strong financial health and potential for future growth in the sector.

• Get an in-depth perspective on Snt DynamicsLtd's performance by reading our health report here.

• Evaluate Snt DynamicsLtd's historical performance by accessing our past performance report.

Boryung (KOSE:A003850)

Simply Wall St Value Rating: ★★★★★★

Overview: Boryung Corporation engages in the manufacture and sale of pharmaceutical products in South Korea and internationally, with a market cap of ₩651.45 billion.

Operations: Boryung Corporation generates revenue primarily from its pharmaceutical manufacturing and sales segment, amounting to ₩889.42 billion. The company's financial performance is reflected in its net profit margin of 8.5%.

Boryung has demonstrated impressive growth, with earnings increasing by 24.2% over the past year, outpacing the Pharmaceuticals industry’s 18.9%. Trading at a significant discount of 77.5% below its estimated fair value, Boryung's debt to equity ratio improved from 39% to 34.5% in five years. Recent first-quarter results showed sales jumping to KRW178 million from KRW40 million last year and net income rising to KRW23.4 billion from KRW11.4 billion, reflecting robust performance and promising potential for future growth.

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

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

Key Takeaways

• Reveal the 193 hidden gems among our KRX Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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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