Northcape Capital’s Ross Cameron picks Korean water filtration company Coway as his stock tip for the Sohn Hearts & Minds conference. 

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Coway is a world leader in water and air purification, built on long-term subscription contracts rather than one-off sales. 

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More than 95 per cent of revenue is recurring, with churn of just 0.3 per cent, delivering 27 years of double-digit subscriber growth – through both the Asian and global financial crises. 

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Despite returns on equity above 20 per cent, Coway trades on just 9 times earnings, overlooked as tech stocks dominate the South Korean exchange. 

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With activist investor Align Partners buying a 7 per cent stake and management now tying pay to the share price, Mr Cameron says a re-rating is long overdue.

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