PSK HOLDINGS And 2 Other Undiscovered Gems In South Korea

Simply Wall St · 10/16 06:05

The South Korean market has shown positive momentum, rising 1.1% over the past week and achieving a 4.9% increase over the last year, with earnings projected to grow by 30% annually. In this promising environment, identifying stocks with strong growth potential and solid fundamentals can be key to uncovering hidden opportunities like PSK HOLDINGS and two other lesser-known gems in South Korea.

Top 10 Undiscovered Gems With Strong Fundamentals In South Korea

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
Korea Airport ServiceLtd NA 3.97% 42.22% ★★★★★★
Miwon Chemicals 0.08% 11.70% 14.38% ★★★★★★
NOROO PAINT & COATINGS 13.99% 5.04% 7.74% ★★★★★★
Korea Ratings NA 1.13% 0.54% ★★★★★★
Kyung Dong Navien 22.40% 11.19% 18.84% ★★★★★★
Namuga 14.47% 0.88% 38.25% ★★★★★★
iMarketKorea 28.53% 5.35% 1.30% ★★★★★☆
ASIA Holdings 34.98% 8.43% 16.17% ★★★★★☆
Daewon Cable 30.50% 8.72% 60.28% ★★★★★☆
FnGuide 36.10% 8.92% 10.27% ★★★★☆☆

Click here to see the full list of 188 stocks from our KRX Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

PSK HOLDINGS (KOSDAQ:A031980)

Simply Wall St Value Rating: ★★★★★☆

Overview: PSK HOLDINGS Inc. specializes in the production and sale of semiconductor manufacturing and flat panel display equipment on a global scale, with a market cap of ₩1.12 trillion.

Operations: The primary revenue stream for PSK HOLDINGS Inc. is its semiconductor manufacturing equipment segment, generating ₩132.98 billion.

Despite its small size, PSK Holdings has shown impressive earnings growth of 40.8% over the past year, outpacing the semiconductor industry's -10%. The company has more cash than total debt, though its debt-to-equity ratio rose from 0% to 4.4% in five years. A notable one-off gain of ₩26.4 billion affected recent results. Recently added to the S&P Global BMI Index, it forecasts a steady annual earnings growth rate of 20.74%.

KOSDAQ:A031980 Debt to Equity as at Oct 2024
KOSDAQ:A031980 Debt to Equity as at Oct 2024

Kyung Dong Navien (KOSE:A009450)

Simply Wall St Value Rating: ★★★★★★

Overview: Kyung Dong Navien Co., Ltd. is a South Korean company specializing in the manufacturing and sale of machinery and heat combustion equipment, with a market cap of ₩1.24 trillion.

Operations: Kyung Dong Navien generates revenue primarily from its air conditioning manufacturing and sale segment, which reported ₩1.29 billion.

Kyung Dong Navien's performance paints a promising picture with earnings growth of 85.5% over the past year, outpacing the building industry average of 28.5%. The company's net debt to equity ratio stands at a satisfactory 6.5%, reflecting prudent financial management as it has decreased from 46.4% to 22.4% over five years. Additionally, its free cash flow is positive, and interest payments are well-covered by EBIT at a robust multiple of 27x, indicating strong operational efficiency and financial health in this small-cap space.

KOSE:A009450 Debt to Equity as at Oct 2024
KOSE:A009450 Debt to Equity as at Oct 2024

KCTech (KOSE:A281820)

Simply Wall St Value Rating: ★★★★★★

Overview: KCTech Co., Ltd. is a South Korean company that manufactures and distributes semiconductor systems, display systems, and electronic materials, with a market cap of ₩812.56 billion.

Operations: KCTech Co., Ltd. generates revenue primarily through its semiconductor systems, display systems, and electronic materials segments. The company has a market capitalization of approximately ₩812.56 billion.

KCTech, a nimble player in the semiconductor sector, is debt-free and boasts high-quality earnings. Despite a recent negative earnings growth of 1.5%, it outpaces the industry average of 10%. The company has reported positive free cash flow over the past five years, with figures reaching KRW 32.17 million as of June 2024. Additionally, KCTech announced share repurchase programs totaling KRW 10 billion to enhance shareholder value and stabilize its volatile stock price.

KOSE:A281820 Earnings and Revenue Growth as at Oct 2024
KOSE:A281820 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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.