Stock Analysis

3 High Growth Stocks With Insider Ownership On KRX

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The South Korea stock market has experienced mixed performance recently, with the KOSPI index showing slight fluctuations around the 2,650-point mark. Despite this volatility, certain growth companies with high insider ownership continue to attract attention for their potential to outperform in such a dynamic environment. In this article, we will explore three high-growth stocks listed on the Korea Exchange (KRX) that boast significant insider ownership.

Top 10 Growth Companies With High Insider Ownership In South Korea

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%35.6%
Seojin SystemLtd (KOSDAQ:A178320)30.5%52.1%
Bioneer (KOSDAQ:A064550)15.8%97.6%
ALTEOGEN (KOSDAQ:A196170)26.6%99.5%
Oscotec (KOSDAQ:A039200)26.1%122%
Vuno (KOSDAQ:A338220)19.5%110.9%
HANA Micron (KOSDAQ:A067310)18.3%100.3%
Park Systems (KOSDAQ:A140860)33%35.6%
UTI (KOSDAQ:A179900)33.1%134.6%
Techwing (KOSDAQ:A089030)18.7%83.6%

Click here to see the full list of 88 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

People & Technology (KOSDAQ:A137400)

Simply Wall St Growth Rating: ★★★★★★

Overview: People & Technology Inc. (KOSDAQ:A137400) provides a range of machinery services including coating, calendaring, slitting, and automation, with a market cap of ₩1.36 trillion.

Operations: The company's revenue from Machinery & Industrial Equipment is ₩792.60 billion.

Insider Ownership: 16.4%

Earnings Growth Forecast: 35.6% p.a.

People & Technology, a South Korean firm with substantial insider ownership, is forecast to experience significant growth. The company's revenue is expected to grow by 34.2% annually, outpacing the market's 10.5%. Earnings are projected to increase by 35.6% per year, surpassing the KR market's 29.3%. Despite past shareholder dilution, its Return on Equity is anticipated to reach 26.6% in three years and it trades at a notable discount of 54.9% below estimated fair value.

KOSDAQ:A137400 Ownership Breakdown as at Sep 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 approximately ₩4.23 billion.

Operations: Revenue from electronic components and parts amounts to ₩348.75 million.

Insider Ownership: 19.4%

Earnings Growth Forecast: 155.2% p.a.

Enchem, a South Korean firm with high insider ownership, is forecast to become profitable within three years, with earnings expected to grow 155.2% annually. Its revenue growth rate of 63% per year significantly outpaces the market's 10.5%. However, shareholders have experienced dilution in the past year and its share price has been highly volatile over the past three months.

KOSDAQ:A348370 Earnings and Revenue Growth as at Sep 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 ₩7.20 trillion.

Operations: HYBE Co., Ltd. generates revenue from three main segments: Label (₩1.28 trillion), Platform (₩361.12 billion), and Solution (₩1.24 trillion).

Insider Ownership: 32.5%

Earnings Growth Forecast: 42.2% p.a.

HYBE, a South Korean firm with high insider ownership, recently completed a share repurchase program worth KRW 26.09 billion to stabilize its stock price. Despite a significant drop in net income for Q2 2024 compared to the previous year, the company’s earnings are forecast to grow by 42.23% annually, outpacing the market average of 29.3%. Trading at 26.2% below its estimated fair value and with revenue growth expected at 14% per year, HYBE remains an attractive growth prospect despite recent financial challenges.

KOSE:A352820 Ownership Breakdown as at Sep 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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