KRX Value Stock Estimates For October 2024

Simply Wall St · 10/14 21:05

In the last week, the South Korean market has stayed flat but has shown a 3.8% increase over the past year, with earnings forecasted to grow by 30% annually. In such a landscape, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities while maintaining a focus on intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name Current Price Fair Value (Est) Discount (Est)
Samwha ElectricLtd (KOSE:A009470) ₩48850.00 ₩92421.92 47.1%
PharmaResearch (KOSDAQ:A214450) ₩215000.00 ₩424407.22 49.3%
T'Way Air (KOSE:A091810) ₩3165.00 ₩5637.57 43.9%
Cosmecca Korea (KOSDAQ:A241710) ₩76100.00 ₩147557.34 48.4%
TSE (KOSDAQ:A131290) ₩53300.00 ₩99841.16 46.6%
Lutronic (KOSDAQ:A085370) ₩36700.00 ₩63217.94 41.9%
Oscotec (KOSDAQ:A039200) ₩38700.00 ₩65156.22 40.6%
Shinsung E&GLtd (KOSE:A011930) ₩1605.00 ₩2943.91 45.5%
Global Tax Free (KOSDAQ:A204620) ₩3725.00 ₩6410.22 41.9%
Kakao Games (KOSDAQ:A293490) ₩16740.00 ₩29396.88 43.1%

Click here to see the full list of 34 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Hd Hyundai MipoLtd (KOSE:A010620)

Overview: Hd Hyundai Mipo Co., Ltd. is a South Korean company that specializes in the manufacturing, repair, and remodeling of ships, with a market cap of ₩4.01 trillion.

Operations: The company's revenue is primarily derived from its shipbuilding segment, totaling ₩5.10 trillion, with a connection adjustment of -₩870.77 million.

Estimated Discount To Fair Value: 37%

Hd Hyundai Mipo Ltd. is trading 37% below its estimated fair value of ₩159,785.16, highlighting potential undervaluation based on cash flows. Earnings are forecast to grow significantly at 92.48% annually, although revenue growth is slower than 20%, yet still outpaces the South Korean market average of 10.4%. The company is expected to become profitable within three years, with a forecasted return on equity of 13%, which remains relatively low.

KOSE:A010620 Discounted Cash Flow as at Oct 2024
KOSE:A010620 Discounted Cash Flow as at Oct 2024

SK Biopharmaceuticals (KOSE:A326030)

Overview: SK Biopharmaceuticals Co., Ltd. is a pharmaceutical company focused on the research and development of drugs for central nervous system disorders, with a market cap of ₩9.33 trillion.

Operations: The company generates revenue from its New Drug Development segment, amounting to ₩465.06 million.

Estimated Discount To Fair Value: 33.8%

SK Biopharmaceuticals is trading 33.8% below its estimated fair value of ₩179,969.09, suggesting potential undervaluation based on cash flows. The company recently became profitable and is expected to see significant earnings growth at 70.6% annually over the next three years, outpacing the South Korean market's average growth rate of 30.3%. Revenue is projected to grow at 22.4% per year, surpassing the market's average of 10.4%.

KOSE:A326030 Discounted Cash Flow as at Oct 2024
KOSE:A326030 Discounted Cash Flow as at Oct 2024

HYBE (KOSE:A352820)

Overview: HYBE Co., Ltd. operates in music production, publishing, and artist development and management, with a market cap of ₩7.68 trillion.

Operations: The company's revenue is derived from three primary segments: Label (₩1.28 trillion), Platform (₩361.12 billion), and Solution (₩1.24 trillion).

Estimated Discount To Fair Value: 22%

HYBE is trading 22% below its estimated fair value of ₩236,144.49, indicating potential undervaluation based on cash flows. Despite recent earnings challenges, with net income dropping significantly year-over-year, earnings are forecast to grow at 42.6% annually over the next three years, surpassing the South Korean market's average growth rate. The recent share buyback program demonstrates management's confidence in stabilizing stock prices amidst these fluctuations.

KOSE:A352820 Discounted Cash Flow as at Oct 2024
KOSE:A352820 Discounted Cash Flow as at Oct 2024

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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.