Undiscovered Gems In South Korea To Watch This October 2024
The South Korean market has remained flat over the past week but has shown a 6.3% increase over the last year, with earnings projected to grow by 30% annually. In this context, identifying stocks that are poised for growth yet remain under the radar can offer intriguing opportunities for investors seeking to capitalize on these favorable conditions.
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 | 1.97% | 8.84% | ★★★★★★ |
Miwon Chemicals | 0.08% | 11.70% | 14.38% | ★★★★★★ |
Korea Ratings | NA | 1.13% | 0.54% | ★★★★★★ |
Woori Technology Investment | NA | 25.66% | -1.45% | ★★★★★★ |
Kyung Dong Navien | 22.40% | 11.19% | 18.84% | ★★★★★★ |
Synergy Innovation | 12.39% | 12.87% | 28.82% | ★★★★★★ |
ONEJOON | 10.13% | 35.30% | -5.78% | ★★★★★☆ |
Daewon Cable | 30.50% | 8.72% | 60.28% | ★★★★★☆ |
Itcen | 64.57% | 14.33% | -24.39% | ★★★★★☆ |
FnGuide | 36.10% | 8.92% | 10.27% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
People & Technology
Simply Wall St Value Rating: ★★★★★★
Overview: People & Technology Inc. specializes in providing machinery solutions including coating, calendaring, slitting, and automation with a market capitalization of ₩1.44 billion.
Operations: People & Technology Inc. generates revenue primarily from its Machinery & Industrial Equipment segment, which accounts for ₩792.60 million.
People & Technology, a small company in South Korea, has shown impressive earnings growth of 50.9% over the past year, outpacing the Machinery industry's 5.4%. Its net debt to equity ratio stands at a satisfactory 19.4%, having reduced from 78% five years ago. The company trades at a significant discount of 52.3% below its estimated fair value, suggesting potential undervaluation despite recent shareholder dilution and negative free cash flow trends.
Take a closer look at People & Technology's potential here in our health report.
Assess People & Technology's past performance with our detailed historical performance reports.
TaesungLtd
Simply Wall St Value Rating: ★★★★★☆
Overview: Taesung Co., Ltd. is a company that specializes in the development, manufacturing, and sale of PCB automation equipment both domestically in South Korea and internationally, with a market capitalization of approximately ₩970.86 billion.
Operations: Taesung generates revenue primarily from the manufacturing and sale of PCB automation equipment, amounting to approximately ₩45.68 billion.
Taesung Ltd., a small cap player in South Korea's semiconductor industry, has shown impressive earnings growth of 1482% over the past year, significantly outpacing the industry's -10%. Its interest payments are well covered with EBIT at 17.5 times, indicating strong financial health. However, shareholders experienced dilution recently and free cash flow remains negative. The company's net debt to equity ratio stands satisfactorily at 4.2%. Recently added to the S&P Global BMI Index, Taesung is gaining recognition in global markets.
Dive into the specifics of TaesungLtd here with our thorough health report.
Understand TaesungLtd's track record by examining our Past report.
Dongwon Systems
Simply Wall St Value Rating: ★★★★☆☆
Overview: Dongwon Systems Corporation is a South Korean packaging company that manufactures and markets packaging materials, with a market cap of ₩1.47 trillion.
Operations: The packaging business segment of Dongwon Systems generates revenue of approximately ₩1.27 trillion.
Dongwon Systems, a notable player in South Korea's packaging industry, has shown promising financial health with net income rising to ₩22.26 billion from ₩17.9 billion year-over-year for Q2 2024. This growth is reflected in their earnings per share, which increased from ₩612 to ₩761. The company's debt-to-equity ratio improved over five years from 69.4% to 61.9%, and interest coverage stands strong at 5.2x EBIT, indicating robust earnings quality and effective debt management strategies amidst high leverage levels of 48%.
Click to explore a detailed breakdown of our findings in Dongwon Systems' health report.
Gain insights into Dongwon Systems' past trends and performance with our Past report.
Taking Advantage
Click here to access our complete index of 184 KRX Undiscovered Gems With Strong Fundamentals.
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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.
Companies discussed in this article include KOSDAQ:A137400 KOSDAQ:A323280 and KOSE:A014820.
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