Stock Analysis

3 High Growth KRX Stocks With Significant Insider Ownership

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The South Korean market has seen a 1.9% increase over the last week, with the Information Technology sector rising by 4.0%, and it is up 3.8% over the past year. In this promising environment, identifying growth companies with significant insider ownership can be particularly advantageous for investors seeking strong alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In South Korea

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.5%35.6%
ALTEOGEN (KOSDAQ:A196170)26.6%72.9%
Bioneer (KOSDAQ:A064550)17.5%89.7%
Global Tax Free (KOSDAQ:A204620)21.4%90.6%
Seojin SystemLtd (KOSDAQ:A178320)29.6%58.7%
Park Systems (KOSDAQ:A140860)33%37.5%
Vuno (KOSDAQ:A338220)19.5%110.9%
HANA Micron (KOSDAQ:A067310)20.2%97.4%
UTI (KOSDAQ:A179900)33.1%122.7%
Techwing (KOSDAQ:A089030)18.7%77.8%

Click here to see the full list of 90 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

ALTEOGEN (KOSDAQ:A196170)

Simply Wall St Growth Rating: ★★★★★★

Overview: ALTEOGEN Inc., a bio company with a market cap of ₩15.86 trillion, focuses on developing long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars.

Operations: Revenue from biotechnology amounts to ₩121.09 billion.

Insider Ownership: 26.6%

Revenue Growth Forecast: 48.7% p.a.

ALTEOGEN Inc. has seen significant growth, becoming profitable this year with revenue expected to grow 48.7% annually, outpacing the Korean market's 10.6%. The recent MFDS approval of Tergase® marks a pivotal transition to a commercial-stage company. Despite past shareholder dilution and high share price volatility, its earnings are forecast to grow 72.95% per year with a very high return on equity projected at 45.2% in three years, trading at 72.5% below estimated fair value.

KOSDAQ:A196170 Ownership Breakdown as at Aug 2024

Enchem (KOSDAQ:A348370)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Enchem Co., Ltd. manufactures and sells electrolytes and additives for secondary batteries and EDLC, with a market cap of ₩4.26 billion.

Operations: The company's revenue from electronic components and parts amounts to ₩357.37 billion.

Insider Ownership: 19.4%

Revenue Growth Forecast: 56.5% p.a.

Enchem is forecast to experience substantial revenue growth of 56.5% annually, significantly outpacing the South Korean market's 10.6%. Despite recent shareholder dilution and high share price volatility, the company is expected to become profitable within three years with earnings projected to grow at an impressive rate of 144.8% per year. High insider ownership aligns management’s interests with shareholders, potentially driving long-term value creation despite short-term fluctuations.

KOSDAQ:A348370 Ownership Breakdown as at Aug 2024

Hyosung Heavy Industries (KOSE:A298040)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment in South Korea and internationally, with a market cap of ₩2.89 trillion.

Operations: Hyosung Heavy Industries generates revenue through the sale of heavy electrical equipment both domestically and internationally.

Insider Ownership: 17.9%

Revenue Growth Forecast: 10.7% p.a.

Hyosung Heavy Industries is forecasted to achieve annual earnings growth of 34.7%, surpassing the South Korean market's average of 28.3%. Despite high share price volatility, the company’s earnings grew by 117.9% over the past year and are expected to continue growing significantly over the next three years. Trading at a substantial discount (55.8%) below its estimated fair value, analysts anticipate a 30.6% rise in stock price, though debt coverage by operating cash flow remains a concern.

KOSE:A298040 Earnings and Revenue Growth as at Aug 2024

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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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