The South Korean market has climbed 2.2% in the last 7 days, though it has remained flat overall in the past year. With earnings forecast to grow by 29% annually, identifying stocks with strong growth potential and solid fundamentals could be key to capitalizing on this promising outlook.
Top 10 Undiscovered Gems With Strong Fundamentals In South Korea
|
Name |
Debt To Equity |
Revenue Growth |
Earnings Growth |
Health Rating |
|---|---|---|---|---|
|
Samyang |
49.49% |
6.68% |
23.96% |
★★★★★★ |
|
Korea Airport ServiceLtd |
NA |
3.97% |
42.22% |
★★★★★★ |
|
Miwon Chemicals |
0.08% |
11.70% |
14.38% |
★★★★★★ |
|
Woori Technology Investment |
NA |
25.66% |
-1.45% |
★★★★★★ |
|
SELVAS Healthcare |
13.50% |
9.36% |
71.59% |
★★★★★★ |
|
Synergy Innovation |
12.39% |
12.87% |
28.82% |
★★★★★★ |
|
ONEJOON |
10.13% |
35.30% |
-5.78% |
★★★★★☆ |
|
iMarketKorea |
28.53% |
5.35% |
1.30% |
★★★★★☆ |
|
Oriental Precision & EngineeringLtd |
54.53% |
3.14% |
0.80% |
★★★★★☆ |
|
FnGuide |
36.10% |
8.92% |
10.27% |
★★★★☆☆ |
We’re going to check out a few of the best picks from our screener tool.
Simply Wall St Value Rating: ★★★★★★
Overview: Cheryong Electric Co., Ltd. manufactures and sells power electric equipment in South Korea, with a market cap of ₩905.92 billion.
Operations: Cheryong Electric Co., Ltd. generates revenue primarily from the sale of power electric equipment in South Korea, supported by a market cap of ₩905.92 billion.
Cheryong Electric Ltd., a small cap player in South Korea’s electrical industry, has shown impressive performance with a 134% earnings growth over the past year, far outpacing the industry’s 18.5%. The company is debt-free compared to five years ago when its debt to equity ratio was 2.3%, and it’s trading at 80.9% below estimated fair value. Despite recent share price volatility, Cheryong Electric remains profitable with high-quality earnings and positive free cash flow.
Simply Wall St Value Rating: ★★★★★★
Overview: YC Corporation develops, manufactures, and sells inspection equipment for semiconductor memories in South Korea and internationally with a market cap of ₩1.07 trillion.
Operations: YC Corporation generates revenue primarily from its Semiconductor Division (₩161.99 billion), followed by Electrical and Electronic Accessories (₩42.12 billion), and Wholesale/Retail (₩4.71 billion).
YC, a small-cap semiconductor firm in South Korea, has experienced a challenging year with earnings growth at -7.1%, underperforming the industry average of -10%. Despite this, YC’s debt to equity ratio improved significantly from 43.6% to 18% over five years, indicating better financial health. Earnings are projected to grow by nearly 50% annually, suggesting strong future potential. However, recent share price volatility and negative free cash flow remain concerns for investors.
Simply Wall St Value Rating: ★★★★★☆
Overview: Taihan Cable & Solution Co., Ltd. manufactures, processes, and sells electric wires, cables, and related products worldwide with a market cap of ₩2.09 trillion.
Operations: Wire sales contribute ₩3.42 billion to the revenue of Taihan Cable & Solution Co., Ltd., with inter-division sales adjustments amounting to -₩380.13 million.
Taihan Cable & Solution has demonstrated impressive earnings growth, with net income reaching KRW 24.88 million in Q2 2024, up from KRW 12.82 million a year prior. Over the past five years, its debt to equity ratio improved significantly from 203.6% to 30.2%. Despite a drop in sales to KRW 8.82 million this quarter compared to KRW 9.75 million last year, the company’s EBIT covers interest payments by a solid margin of 6.4x, indicating strong financial health and potential for future growth at an estimated rate of 15.85% per annum.
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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:A033100 KOSDAQ:A232140 and KOSE:A001440.
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