We think the Korean stock market is the next Asian powerhouse. Korea has a surplus of publicly traded small to mid-cap companies that, despite positive trends in corporate governance and solid if unspectacular competitive advantages, do not receive the attention and interest they deserve from global investors. Although there is high domestic market participation, particularly among enthusiastic retail investors, global investors, especially in the United States, are largely unaware of the critical mass of impressive companies often trading at excessively low valuations. The Korean market can be difficult to trade, and because many company filings and press releases are only issued in Korean, several fantastic opportunities pass by unnoticed. We believe we have discovered one such hidden gem.
We are long DN Automotive Corporation (“DN Automotive” or the “Company”), a Korean manufacturer specializing in vehicle vibration management systems (“VMS”) and machine tools. Despite robust underlying cash flows and improving margins, the Company languishes at a depressed valuation of 3.1x TTM P/E, in part due to the cyclical headwinds in the automotive supply and machine tools industries and in part due to a lack of awareness of its under-the-radar business. This is about to change.,
DN Automotive

More ... latest change: 2025-04-09