Stock Analysis

Three Growth Companies With High Insider Ownership On KRX

Published

Over the last 7 days, the South Korean market has risen 1.9%, driven by gains in the Financials and Information Technology sectors of 5.7% and 1.4%, respectively. In light of this positive momentum and a forecasted annual earnings growth of 29%, identifying growth companies with high insider ownership can be particularly advantageous for investors seeking strong alignment between management interests and shareholder value.

Top 10 Growth Companies With High Insider Ownership In South Korea

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.5%35.6%
Bioneer (KOSDAQ:A064550)17.5%89.7%
Global Tax Free (KOSDAQ:A204620)21.4%78.5%
Seojin SystemLtd (KOSDAQ:A178320)30.8%62.1%
Oscotec (KOSDAQ:A039200)26.3%114.7%
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 91 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Medy-Tox (KOSDAQ:A086900)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Medy-Tox Inc. is a South Korean biopharmaceutical company with a market cap of ₩1.44 trillion.

Operations: Medy-Tox generates revenue primarily from its biotechnology segment, amounting to ₩233.03 billion.

Insider Ownership: 19.8%

Revenue Growth Forecast: 12.4% p.a.

Medy-Tox, a growth company with high insider ownership in South Korea, is trading at 55.8% below its estimated fair value. Although its revenue is forecast to grow at 12.4% per year, slower than the desired 20%, earnings are expected to grow significantly at 63.91% annually over the next three years, outpacing the market's average of 28.5%. However, profit margins have declined from 18.5% last year to just 0.8%, and the share price has been highly volatile recently.

KOSDAQ:A086900 Earnings and Revenue Growth as at Aug 2024

SungEel HiTech (KOSDAQ:A365340)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SungEel HiTech Co., Ltd. operates as a secondary battery recycling company in South Korea, with a market cap of ₩673.50 billion.

Operations: The company's revenue segments include ₩232.20 billion from Secondary Battery Raw Material Manufacturing and a consolidation adjustment of -₩32.71 million.

Insider Ownership: 38%

Revenue Growth Forecast: 35% p.a.

SungEel HiTech's earnings are forecast to grow 49.17% annually, significantly outpacing the South Korean market's average of 28.5%. Revenue is expected to increase by 35% per year, faster than the market's 10.4%. However, profit margins have declined from 12.5% last year to 3.4%, and its return on equity is projected to be low at 7.6%. Additionally, debt coverage through operating cash flow remains a concern for the company’s financial health.

KOSDAQ:A365340 Ownership Breakdown as at Aug 2024

Foosung (KOSE:A093370)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Foosung Co., Ltd., along with its subsidiaries, manufactures and sells chemical products for various industries including automotive, iron and steel, semiconductor, construction, and environmental sectors in South Korea, with a market cap of ₩705.74 billion.

Operations: The company's revenue segments include Chemical Equipment (₩178.79 million) and Fluorine Compounds (₩318.50 million).

Insider Ownership: 32.9%

Revenue Growth Forecast: 13.8% p.a.

Foosung's revenue is forecast to grow at 13.8% annually, outpacing the South Korean market's 10.4%. The company is expected to become profitable within three years, with earnings projected to grow at 73.65% per year. Recent earnings reports show significant improvement, with Q2 sales reaching KRW 956.59 million and net income turning positive at KRW 14,428.32 million from a loss last year. However, debt coverage remains an issue and shareholders experienced dilution in the past year.

KOSE:A093370 Ownership Breakdown as at Aug 2024

Summing It All Up

Want To Explore Some Alternatives?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com