🔗 Related: Earnings-Explosion Screen — 67 Names · Korea Daily Market Hub
The previous post showed an “earnings explosion” screen returning 67 names with the lesson “most have already moved.” This piece runs the inverse experiment: stack filters to the limit and see what actually clears. Nine simultaneous conditions — ROE ≥25%, revenue growth ≥+15%, OP growth ≥+20%, OPM ≥10%, P/E ≤25×, target headroom ≥+15%, daily turnover ≥₩3.0bn, foreign+institution net-buy, RSI <75 — and only four Korean equities pass.
Executive Summary
- Only four names clear the nine simultaneous filters: VM, Pamicell, Silicon2, Samyang Foods. Out of the entire Korean listed universe. The narrowness of the result is the point.
- The formula targets the intersection of “good business” and “what the market is currently buying.” ROE ≥25% catches efficient-capital users; P/E ≤25× catches names not yet expensively priced; foreign+institution net-buy catches names with active flow support. When all three filter dimensions clear simultaneously, quality, price, and flow are confirmed in one cohort.
- Pamicell survives both screens. It cleared the previous earnings-explosion screen of 67 names and this 9-filter screen of 4 names. ROE 38%, OPM 36.3%, OP growth +72.3%, foreign+institution 20D +₩53.7bn. Two independent screening lenses, same conclusion — the strongest single signal in this cohort.
- Silicon2 has the cleanest quality-vs-price combination. ROE 38.7%, P/E 13.3×, target headroom +36.8%. Among the four, the price-relative-to-quality combination is the cleanest. But its current leadership intensity is below Pamicell’s.
- VM ranks #1 on raw quant but with elevated late-stage volatility risk. OP growth +242.9%, P/E 19.8×, target headroom +29.8%. On numbers alone the strongest. But +451% off 52-week low is “already-moved” territory — a tactical/aggressive holding rather than a core position.
- The narrow-miss list is the more interesting research output. HD Hyundai Marine Engine (P/E 25.7×, missed by 0.7×), Classys (only flow filter failed), PharmaResearch (only flow filter failed), Isu Petasys (P/E too high), Samsung Electronics (RSI too high). One condition flips and these names enter — useful “watch list” candidates.
1. Why ROE 25% — The Foundation of the Screen
1.1 The One-Line Definition
ROE 25% means: for every ₩100 of equity, the company generates ₩25 of net income annually. In plain terms, capital is being deployed very efficiently.
1.2 Why This Is a Strong First Filter
ROE ≥25% carries three implications:
| Implication | Read |
|---|---|
| High capital efficiency | Modest equity base, large absolute earnings |
| Reinvestment value | Re-deployed earnings compound the equity base |
| Multiple justification | Higher P/E or P/B has analytic basis |
The critical question is whether the ROE is sustainable. A single year of ROE 25% is meaningless. To be a “good ROE,” it has to hold for 2–3+ years, be accompanied by revenue growth, and not depend on leverage.
1.3 Good ROE 25% vs Bad ROE 25%
| Good ROE 25% | Bad ROE 25% |
|---|---|
| Comes with revenue growth | Revenue is flat; only NI spikes |
| OPM is high | Debt-driven ROE inflation |
| Sustainable across 2–3+ years | One-year peak from a cyclical top |
| Reinvestable market is large | One-off (asset sale, FX gain, divestiture) |
| P/E / P/B is justifiable vs growth | P/B ≥10× already, no headroom |
That distinction matters. ROE ≥25% by itself is a first-filter for “good-business candidates,” not a buy signal. A real buy decision requires growth durability, valuation, flow, and chart position — which is exactly why the screen stacks nine filters.
2. The Nine Filters — Why Stack Them
2.1 The Formula
① ROE ≥ 25%
② 2026F revenue growth ≥ +15%
③ 2026F OP growth ≥ +20%
④ 2026F OPM ≥ 10%
⑤ 2026F P/E ≤ 25×
⑥ Target-price headroom ≥ +15%
⑦ 20-day average turnover ≥ ₩3.0bn
⑧ Trailing 20-day foreign + institution net-buy
⑨ RSI < 75 (or 20-day MA pullback confirmed)
2.2 What Each Filter Catches and Filters Out
| Filter | Catches | Filters out |
|---|---|---|
| ① ROE ≥25% | High capital-efficiency businesses | Profit-poor businesses |
| ② Revenue ≥+15% | Top-line-growing businesses | ROE-from-cost-cutting / one-offs |
| ③ OP ≥+20% | Earnings leverage | Top-line growth without margin lift |
| ④ OPM ≥10% | Pricing power | Low-margin top-line expansion |
| ⑤ P/E ≤25× | Not yet expensively priced | Already-discounted-future-expectations |
| ⑥ Target headroom ≥+15% | Reward room remains | At or near target price |
| ⑦ Turnover ≥₩3.0bn | Tradable | Ultra-small-cap illiquidity |
| ⑧ Foreign+institution net-buy | What the market is currently buying | Where smart money is exiting |
| ⑨ RSI <75 | Not yet overheated | Short-term overbought |
2.3 The Core Insight Behind Stacking
When all nine clear simultaneously, three independent dimensions confirm at once:
Quality: ROE + OPM + revenue/OP growth
Price: P/E + target headroom
Market validation: foreign+institution flow + RSI + turnover
A “good business” (quality) that is “not yet expensively priced” (price) and “currently being bought” (market validation) — the intersection.
The fact that nine simultaneous filters are hard to clear is itself the value. Where the earnings-explosion screen returned 67, this screen returns 4. Strict filters produce meaningful results.
3. The Four That Pass
| Rank | Name | ROE | P/E | OP growth | OPM | Target hd | 20D return | Foreign+Inst 20D | Profile |
|---|---|---|---|---|---|---|---|---|---|
| 1 | VM (KOSDAQ: 081000) | 34.2% | 19.8× | +242.9% | 29.4% | +29.8% | +42.2% | +₩25.1bn | Aggressive momentum |
| 2 | Pamicell (KOSPI: 005690) | 38.0% | 21.1× | +72.3% | 36.3% | +21.9% | +36.7% | +₩53.7bn | Focus candidate |
| 3 | Silicon2 (KOSDAQ: 257720) | 38.7% | 13.3× | +30.3% | 18.0% | +36.8% | +15.1% | +₩31.7bn | Quality candidate |
| 4 | Samyang Foods (KOSPI: 003230) | 35.3% | 18.8× | +31.7% | 23.4% | +38.2% | +7.1% | +₩16.3bn | Steady compounder |
All four share ROE 34–39%, OPM 18–36%, foreign+institution net-buy. Common: capital efficiency + earnings growth + active flow. Differences are character.
4. Per-Name Read
4.1 Pamicell — The Cross-Screen Survivor
Why Pamicell is the practical #1: it cleared the previous earnings-explosion screen of 67 and this 9-filter screen of 4. Two independent screening lenses, same conclusion.
ROE 38.0% → top-tier capital efficiency
OPM 36.3% → highest margin among the four
OP growth +72.3% → earnings leverage confirmed
P/E 21.1× → not yet expensively priced
Foreign+Inst 20D +₩53.7bn → flow strongest in cohort
Pamicell was already analyzed in Series Part 3 with a GARP Score of 150 (top of the materials-stock universe). The fact that it also clears this independent ROE-25%-multi-factor screen means the appeal holds across very different filter logic — quality + price + flow as a distinct lens from the original GARP composite.
That said, 20-day return +36.7% raises near-term overheating risk. The right posture is “wait for pullback or scale in after 1Q earnings confirm” rather than “full conviction now.”
Tracking signals:
- ₩19,000–20,000 holding as support (on pullback)
- 1Q26 OP ≥₩11.5bn with OPM ≥30%
4.2 Silicon2 — Cleanest Quality-vs-Price
Silicon2 has the cleanest combination of capital efficiency relative to multiple in the cohort.
ROE 38.7% → highest ROE of the four
P/E 13.3× → cheapest of the four
Target headroom +36.8% → second-highest in cohort
20D +15.1% → most stable of the four (not overheated)
ROE 38.7% with P/E 13.3× is rare in the Korean market. When ROE is this high but P/E sits at 13×, the market is either (a) skeptical that the ROE is sustainable, or (b) hasn’t fully discovered the name yet.
Silicon2 is a global K-beauty distribution platform. Strong overseas-revenue mix and good margins. But distribution-business dynamics — freight, FX, margin variability — matter. If the market’s P/E 13× reflects “distribution-business discount,” that’s defensible; if it reflects “growth deceleration concern,” it warrants caution.
Recent leadership intensity is weaker than Pamicell’s. 20D +15.1% is steady but not the strongest mover. Closer to “high-quality name that can move again” than “currently leading.”
Tracking signals:
- ₩41,500–43,000 holding as support (on pullback)
- 2026F OP growth ≥+20% maintained
- Freight / margin pressure not materializing
4.3 VM — Best Quant Score, Highest Variance
On quant alone, VM is the strongest of the four.
OP growth +242.9% → dominant #1 in cohort
OPM 29.4% → second highest
P/E 19.8× → reasonable
Target headroom +29.8% → adequate
Foreign+Inst 20D +₩25.1bn → solid
The issue is price location. 52-week-low to current: +451%. A 4.5×-in-a-year run. This isn’t “undervalued discovery” — it’s “already-moved territory.”
OP growth +242.9% may carry “turnaround base-effect” character. If 2025 OP was depressed, even modest absolute lift produces a large growth rate. Whether the growth is “structural” or “base effect” is the analytical question.
VM is more of an aggressive position than a core hold. Upside is meaningful when right; if wrong, the +451%-off-low position implies large downside.
Tracking signals:
- ₩52,000–55,000 pullback support
- Order-momentum maintained
- 2026F OP estimate revisions
4.4 Samyang Foods — Solid Compounder, Not the Current Leader
Samyang Foods clears all nine on numbers.
ROE 35.3% → high
OPM 23.4% → strong
P/E 18.8× → reasonable
Target headroom +38.2% → highest in cohort
A genuinely strong business with a clean narrative — Buldak ramen global expansion, rising overseas-revenue share, margin expansion.
But 20D +7.1% is the weakest of the four. In the current market regime where momentum-leadership matters, Samyang isn’t on the front line. A portfolio-stability slot, not a short-term-momentum slot.
Tracking signals:
- ₩1.25M–1.30M pullback for entry consideration
- Overseas growth not decelerating
- OPM peak-out check
5. The Near-Miss List — Where the Real Optionality Sits
| Name | Disqualifier | Failed condition | Read |
|---|---|---|---|
| HD Hyundai Marine Engine | P/E 25.7× | ⑤ P/E ≤25× | 0.7× miss. Effectively at-pass |
| Classys | Foreign+Inst net-sell | ⑧ Net-buy | Single-flag: flow recovery → in |
| PharmaResearch | Foreign+Inst net-sell | ⑧ Net-buy | Pullback-style quality. Flow confirmation needed |
| Isu Petasys | P/E 41.4×, target +10.5% | ⑤⑥ P/E + target | Leader, but priced |
| Samsung Electronics | RSI >75 | ⑨ RSI | Hold OK; new entry per filter blocked |
The near-miss list is more interesting than it looks because a single condition relaxation puts each one in the active cohort.
HD Hyundai Marine Engine is 0.7× away. In an aggressive-market regime where the P/E filter is loosened from 25× to 30×, it enters. Classys and PharmaResearch enter the moment flow turns positive. Samsung Electronics enters when RSI cools to <75.
Tracking these “waiting candidates” is part of the screen’s value.
6. The Cross-Screen Intersection — Where 67 Meets 4
The previous post returned 67 names from the earnings-explosion screen. This post returns 4 names from the ROE-25%-9-filter screen. Cross the two — and Pamicell appears in both.
[Earnings-explosion screen — 67 names]
Conditions: 2025/2026 profit + OP/NI each ≥+80%
Result: 67 → most already moved
Pamicell: ✓ pass (GARP Score 150)
[ROE-25% screen — 4 names]
Conditions: ROE ≥25% + growth + P/E ≤25× + flow + RSI
Result: 4 → quality+price+flow intersection
Pamicell: ✓ pass (ROE 38%, OPM 36.3%, flow +₩53.7bn)
Cross-screen result:
→ Pamicell survives both lenses with the same conclusion
→ The "earnings explosion" growth lens AND the "ROE+price+flow" quality lens both confirm
This is why cross-screen analysis is more meaningful than any single screen. A single filter creates confirmation bias; two independent filters provide robustness.
Whether Silicon2, VM, and Samyang Foods also cleared the earnings-explosion screen is a separate cross-check. The fact that Pamicell appears in both is, by itself, the strongest analytical signal in this cohort.
7. Two Honest Caveats
7.1 All Four Names Have Recently Run
VM: +451% from 52-week low; 20D +42.2%
Pamicell: +105% from 52-week low; 20D +36.7%
Silicon2: 20D +15.1% (relatively stable)
Samyang Foods: 20D +7.1% (relatively stable)
VM and Pamicell are up 35–42% in 20 sessions. The screen flagged all four at the screening moment, but at already-elevated prices, “full conviction now” is inefficient. Pullback wait or post-earnings entry is the cleaner setup.
7.2 The Screening Formula Itself Can Be Wrong
These nine conditions are not an absolute formula. Several traps:
- ROE may be temporary: a strong 2025 ROE that drops in 2026 is meaningless
- Consensus estimates can revise: 2026F OP-growth is a sell-side estimate, and estimates can be wrong
- Flow can reverse: today’s foreign+institution net-buy can become tomorrow’s net-sell
- RSI <75 is a snapshot: the next day’s print may be ≥75
The screen is “look at this name more deeply,” not “buy this name.” That four cleared means “worth a closer look,” not “guaranteed buy.”
8. Tracking Signals — Four Names + Watch List
8.1 Pamicell (Focus Candidate)
- ₩19,000–20,000 holding as support
- 1Q26 OP ≥₩11.5bn with OPM ≥30%
- Same tracking variables as Series Part 3
8.2 Silicon2 (Quality Candidate)
- ₩41,500–43,000 holding as support
- 2026F OP growth ≥+20% maintained
- Freight / margin pressure not materializing
8.3 VM (Aggressive)
- ₩52,000–55,000 pullback support
- Order momentum maintained
- 2026F OP estimate revisions
8.4 Samyang Foods (Steady-Compound Watch)
- ₩1.25M–1.30M pullback for entry consideration
- Overseas growth not decelerating
- OPM peak-out check
8.5 Watch List
- HD Hyundai Marine Engine: when P/E moves below 25×
- Classys / PharmaResearch: when foreign+institution flow turns to net-buy
- Samsung Electronics: when RSI cools to <75
9. The Single Closing Line
ROE ≥25%, revenue growth ≥+15%, OP growth ≥+20%, OPM ≥10%, P/E ≤25×, target headroom ≥+15%, daily turnover ≥₩3.0bn, foreign+institution net-buy, RSI <75. Stack nine simultaneous filters and only four Korean names clear: VM, Pamicell, Silicon2, Samyang Foods.
If the prior post’s 67-name earnings-explosion screen taught “most have already moved,” this 4-name screen teaches “strict filters surface what actually compounds.” Sixty-seven is too many — the market has discovered most. Four is few enough to matter.
The four share efficient capital deployment, growing earnings, and active flow. Their differences are in character: Pamicell is the focus candidate (cleared both screens, ROE 38%, OPM 36.3%, flow +₩53.7bn); Silicon2 is the quality candidate (ROE 38.7% with P/E 13.3× — best quality-vs-price); VM is the aggressive position (OP growth +243%, dominant on pure quant, but +451% off low); Samyang Foods is the steady compounder (clean numbers, but not the current momentum leader).
Pamicell surviving both screens is the strongest analytical signal in this cohort. Two independent filtering logics — earnings-explosion growth and ROE+price+flow quality — produce the same answer.
That said, all four have recently run hard. The screen result is not a “full-conviction-now” signal. Pullback wait or post-earnings entry is cleaner. The narrow-miss watch list (HD Hyundai Marine Engine, Classys, PharmaResearch, Samsung Electronics) is also worth tracking — relax one filter and any of them enters.
The screen is the start, not the destination. Whether the four names print 67 or 4, the next step is asking why each one cleared and whether that clearance is sustainable.
FAQ — Korean Quality-Compounder Screen May 2026
Q: How many Korean stocks pass a strict 9-filter ROE-25% screen? A: As of May 7, 2026: only 4 names — VM (KOSDAQ 081000), Pamicell (KOSPI 005690), Silicon2 (KOSDAQ 257720), Samyang Foods (KOSPI 003230). The criteria stack ROE ≥25%, revenue growth ≥+15%, OP growth ≥+20%, OPM ≥10%, P/E ≤25×, target headroom ≥+15%, daily turnover ≥₩3.0bn, foreign+institution net-buy, RSI <75.
Q: Why does ROE 25% matter as a screening threshold? A: ROE 25% means the company generates ₩25 of net income per ₩100 of equity per year — a strong indicator of capital-deployment efficiency. Stacked with growth (revenue / OP / margin), valuation (P/E / target), and flow (foreign+institution / RSI) filters, it isolates “good business + reasonable price + active market support” simultaneously.
Q: Why does Pamicell stand out in this cohort? A: Pamicell cleared both the previous earnings-explosion screen (67 names) and this ROE-25% screen (4 names). Two independent filtering logics produced the same answer, which is the strongest analytical signal in either screen. ROE 38%, OPM 36.3%, OP growth +72.3%, foreign+institution 20D +₩53.7bn.
Q: Is Silicon2 (257720) publicly traded? A: Yes — Silicon2 is listed on KOSDAQ under ticker 257720. It is a global K-beauty distribution platform with high overseas-revenue mix and ROE 38.7%. Its P/E 13.3× combined with ROE near 39% is unusually clean quality-vs-price math by Korean-market standards.
Q: What is VM (081000)? A: VM is a KOSDAQ-listed Korean equipment / industrial-products company that cleared the screen with the strongest pure quant score (OP growth +242.9%). However, it has run +451% off its 52-week low, putting it firmly in “already-moved” territory — closer to an aggressive position than a core hold.
Q: Why is Samyang Foods (003230) listed but flagged as steady-compounder? A: Samyang Foods (KOSPI 003230) clears all nine filters with strong fundamentals (ROE 35.3%, OPM 23.4%, P/E 18.8×). However, its 20-day return at +7.1% is the lowest in the cohort, meaning it is not currently the market’s momentum leader — making it a steady-compound portfolio slot rather than a short-term-momentum slot.
Q: Should I just buy all four screen passes? A: No. The screen is “worth a closer look,” not “guaranteed buy.” Four key caveats: ROE may be temporary, consensus estimates can revise, flow can reverse, and RSI <75 is a snapshot. Two of the four (VM and Pamicell) are up 35–42% in 20 sessions — pullback wait or post-earnings entry is cleaner than chasing.
Q: Why is the near-miss list (“HD Hyundai Marine Engine, Classys, PharmaResearch”) interesting? A: Each missed by exactly one condition. HD Hyundai Marine Engine: P/E 25.7× (0.7× miss). Classys / PharmaResearch: foreign+institution net-sell (only flow filter failed). One condition flips and they enter the active cohort. This makes them productive watch-list candidates.
This post is research and commentary only, not investment advice. The 9-filter screen formula, per-name ROE / P/E / OPM / growth figures, and flow data are sourced from local DB, sell-side consensus, and public materials and reflect analyst inference at the screening moment (2026-05-06). Subsequent price / flow / earnings changes can change results. Short-selling, lending, and program-flow data are not confirmed for the local DB. The screen is an analytical starting point, not a buy signal. Analysis can be wrong. Data as of May 6–7, 2026 KST.
Disclaimer: For research and information purposes only. Not investment advice. Names cited are for analytical illustration; readers should perform their own due diligence and consult licensed advisors before any investment decision.