Stock Analysis

3 KRX Growth Companies With Up To 33% Insider Ownership

KOSDAQ:A140860
Source: Shutterstock

The South Korea stock market has moved higher in two straight sessions, advancing more than 125 points or 5 percent in that span. The KOSPI now sits just beneath the 2,570-point plateau although it may be stuck in neutral on Thursday due to mixed global forecasts and lingering concerns about the health of the U.S. economy. In this environment, identifying growth companies with high insider ownership can be a prudent strategy for investors looking for stability and potential upside. Here are three KRX-listed growth companies where insiders hold up to 33% ownership, signaling strong confidence from those closest to the business operations.

Top 10 Growth Companies With High Insider Ownership In South Korea

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.5%35%
Fine M-TecLTD (KOSDAQ:A441270)17.1%36.4%
Bioneer (KOSDAQ:A064550)17.5%89.7%
Global Tax Free (KOSDAQ:A204620)18.1%72.4%
Seojin SystemLtd (KOSDAQ:A178320)29.6%58.7%
Park Systems (KOSDAQ:A140860)33%36.6%
Vuno (KOSDAQ:A338220)19.5%105%
UTI (KOSDAQ:A179900)33.1%122.7%
HANA Micron (KOSDAQ:A067310)17.4%97.4%
Techwing (KOSDAQ:A089030)18.7%77.8%

Click here to see the full list of 85 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Park Systems (KOSDAQ:A140860)

Simply Wall St Growth Rating: ★★★★★★

Overview: Park Systems Corp. develops, manufactures, and sells atomic force microscopy (AFM) systems worldwide with a market cap of ₩1.24 trillion.

Operations: Park Systems Corp.'s revenue from Scientific & Technical Instruments is ₩142.98 billion.

Insider Ownership: 33%

Park Systems, a growth company with high insider ownership in South Korea, is expected to see significant earnings growth of 36.63% annually over the next three years. Analysts forecast its revenue will grow at 22.7% per year, outpacing the broader KR market's 9.9%. Trading at 8.8% below fair value estimates, Park Systems recently launched the FX200 AFM innovation for large samples, enhancing precision and efficiency in research and industrial applications.

KOSDAQ:A140860 Earnings and Revenue Growth as at Aug 2024
KOSDAQ:A140860 Earnings and Revenue Growth as at Aug 2024

CLASSYS (KOSDAQ:A214150)

Simply Wall St Growth Rating: ★★★★★☆

Overview: CLASSYS Inc. is a global provider of medical aesthetics devices with a market cap of ₩3.28 billion.

Operations: CLASSYS generates revenue primarily from its Surgical & Medical Equipment segment, which amounted to ₩191.53 million.

Insider Ownership: 10.1%

CLASSYS, with substantial insider ownership, is expected to see annual earnings growth of 22.5% over the next three years, slightly below the KR market's 28.1%. Its revenue is forecasted to grow at 21.5% per year, significantly outpacing the broader market's 9.9%. Despite a highly volatile share price recently, CLASSYS has consistently grown its earnings by 25.9% annually over the past five years and boasts a projected return on equity of 28.2%.

KOSDAQ:A214150 Earnings and Revenue Growth as at Aug 2024
KOSDAQ:A214150 Earnings and Revenue Growth as at Aug 2024

HYBE (KOSE:A352820)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: HYBE Co., Ltd. operates in music production, publishing, and artist development and management with a market cap of ₩7.56 trillion.

Operations: HYBE's revenue segments include music production at ₩1.25 billion, publishing at ₩850 million, and artist development and management at ₩2.75 billion.

Insider Ownership: 32.5%

HYBE, with significant insider ownership, is forecasted to grow earnings by 29.6% annually, outpacing the KR market's 28.1%. Despite a Q1 revenue drop to KRW 86.49 million from KRW 172.75 million and net income decline to KRW 17.23 billion from KRW 24.29 billion year-over-year, its stock trades at nearly 30% below fair value estimates. Analysts agree on a potential price rise of around 47%, indicating strong growth prospects despite recent revenue challenges.

KOSE:A352820 Ownership Breakdown as at Aug 2024
KOSE:A352820 Ownership Breakdown as at Aug 2024

Where To Now?

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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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