Ross Cameron has delivered the penultimate pitch of the day and it’s Korean-listed Coway Limited, which makes water and air purification products. 

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The stock he says has been overlooked as investors in Korea have piled into AI stocks and trades at 9 times earnings. “This is a boring business, and so it got forgotten,” he said. 

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“We have economically insensitive double-digit earnings growth, a ridiculously cheap multiple and structural tailwinds,” he told the audience. 

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Coway has also been targeted by Korea’s largest activist fund Align Partners which has taken a 7 per cent stake. 

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“They see the same things that we do. This is dirt cheap, and they’re campaigning for more people to understand the opportunity here.”

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The attraction of Coway is that its products are high tech and require ongoing maintenance, which means they can earn recurring revenues. 

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You don’t just walk into the store and buy these machines. Instead, the vast majority of Coway customers enter into a long-term subscription agreement with Coway.”

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This article was originally posted by Australian Financial Review here. Licensed by Copyright Agency. You must not copy this work without permission.

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