Yahoo Finance Exploring Undervalued Stocks On KRX With Intrinsic Value Discounts Ranging From 12.7% To 46.1%
The South Korean stock market has shown robust performance, rising 2.0% in the last week and achieving an 11% increase over the past year, with earnings expected to grow by 30% annually. In such a thriving market, identifying stocks that are trading below their intrinsic value could present potential opportunities for investors looking for growth at a reasonable price.
Top 10 Undervalued Stocks Based On Cash Flows In South Korea
Name | Current Price | Fair Value (Est) | Discount (Est) |
Caregen (KOSDAQ:A214370) | ₩23000.00 | ₩44549.16 | 48.4% |
Revu (KOSDAQ:A443250) | ₩10990.00 | ₩20646.79 | 46.8% |
Anapass (KOSDAQ:A123860) | ₩27800.00 | ₩48807.34 | 43% |
KidariStudio (KOSE:A020120) | ₩4145.00 | ₩7289.16 | 43.1% |
Genomictree (KOSDAQ:A228760) | ₩22600.00 | ₩39335.03 | 42.5% |
Hancom Lifecare (KOSE:A372910) | ₩4885.00 | ₩9749.34 | 49.9% |
Lutronic (KOSDAQ:A085370) | ₩36700.00 | ₩63217.94 | 41.9% |
Shinsung E&GLtd (KOSE:A011930) | ₩2045.00 | ₩4025.01 | 49.2% |
SK Biopharmaceuticals (KOSE:A326030) | ₩80700.00 | ₩149728.31 | 46.1% |
Ray (KOSDAQ:A228670) | ₩12430.00 | ₩20942.05 | 40.6% |
Let's dive into some prime choices out of from the screener
TSE
Overview: TSE Co., Ltd specializes in providing semiconductor test solutions both domestically in South Korea and internationally, with a market capitalization of approximately ₩573.81 billion.
Operations: The firm operates primarily in the semiconductor test solutions sector, serving markets both in South Korea and globally.
Estimated Discount To Fair Value: 34.8%
TSE, currently priced at ₩53,700, trades significantly below our fair value estimate of ₩82,398.34, marking it as undervalued by more than 20%. Despite a highly volatile share price recently and lower profit margins this year (1.2%) compared to last (9.4%), TSE's financial outlook appears robust with earnings expected to grow by 63.75% annually over the next three years—a rate surpassing the South Korean market average. However, its forecasted Return on Equity in three years is relatively low at 10.6%.
Hanall Biopharma
Overview: Hanall Biopharma Co., Ltd. is a pharmaceutical company based in South Korea, engaged in the manufacturing and international sale of pharmaceutical products, with a market capitalization of approximately ₩1.60 billion.
Operations: The company generates its revenue from the manufacturing and international sales of pharmaceutical products.
Estimated Discount To Fair Value: 12.7%
Hanall Biopharma, trading at ₩33,700, is positioned below its calculated fair value of ₩38.62 billion, suggesting undervaluation. The company has recently transitioned to profitability and anticipates robust revenue growth of 14.9% annually, surpassing the South Korean market's average. While earnings are expected to surge by a significant 69.57% per year, its return on equity is projected to remain modest at 11%. Recent developments include advancing a Phase III study for tanfanercept in dry eye treatment, with results expected by mid-2025.
SK Biopharmaceuticals
Overview: SK Biopharmaceuticals Co., Ltd. is a pharmaceutical company focused on developing drugs for central nervous system disorders, with a market capitalization of approximately ₩6.32 billion.
Operations: The company focuses on the development of pharmaceuticals for central nervous system disorders, generating revenues primarily through its drug research and development activities.
Estimated Discount To Fair Value: 46.1%
SK Biopharmaceuticals, priced at ₩80,700, trades significantly below its estimated fair value of ₩149.73 billion. This undervaluation comes as the company is set to shift into profitability within three years, with anticipated earnings growth of 84.97% annually and revenue increases projected at 22.2% per year—both rates exceeding market averages. Additionally, a robust forecasted return on equity of 33.6% highlights its potential financial efficiency despite recent earnings calls confirming these positive trends for Q1 2024.
Summing It All Up
Explore the 38 names from our Undervalued KRX Stocks Based On Cash Flows screener here.
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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:A131290 KOSE:A009420 and KOSE:A326030.
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