Stock Analysis

3 KRX Growth Stocks With Insider Ownership And Up To 155% Earnings Growth

Over the last 7 days, the South Korean market has experienced a 2.8% decline, yet it has shown resilience with a 4.7% rise over the past year and earnings projected to grow by 30% annually. In this context, identifying growth companies with significant insider ownership can be particularly appealing as they often signal confidence in the company's potential and alignment of interests between management and shareholders.

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)30.8%49.1%
Bioneer (KOSDAQ:A064550)15.8%97.6%
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%34.6%
UTI (KOSDAQ:A179900)33.1%134.6%
Techwing (KOSDAQ:A089030)18.7%83.6%
INTEKPLUS (KOSDAQ:A064290)16.3%96.7%

Click here to see the full list of 86 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

EO Technics (KOSDAQ:A039030)

Simply Wall St Growth Rating: ★★★★★☆

Overview: EO Technics Co., Ltd. manufactures and supplies laser processing equipment globally, with a market cap of ₩2.13 trillion.

Operations: The Semiconductor Machine Division generates revenue of ₩292.91 billion.

Insider Ownership: 30.7%

Earnings Growth Forecast: 50.9% p.a.

EO Technics is poised for robust growth, with revenue expected to increase by 27.4% annually, outpacing the South Korean market's 10.5%. Earnings are projected to grow significantly at 50.9% per year, surpassing the market's 29.9%. However, its Return on Equity is forecasted to be relatively low at 14.7% in three years. Despite high insider ownership supporting confidence in management's vision, recent share price volatility presents a risk factor for investors.

KOSDAQ:A039030 Earnings and Revenue Growth as at Oct 2024

ALTEOGEN (KOSDAQ:A196170)

Simply Wall St Growth Rating: ★★★★★★

Overview: ALTEOGEN Inc. is a biotechnology company specializing in the development of long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars, with a market cap of ₩19.10 trillion.

Operations: The company's revenue is primarily derived from its biotechnology segment, totaling ₩90.79 billion.

Insider Ownership: 26.6%

Earnings Growth Forecast: 99.5% p.a.

ALTEOGEN, transitioning to a commercial-stage company with MFDS approval of Tergase®, is positioned for substantial growth. Revenue is forecast to grow 64.2% annually, significantly outpacing the South Korean market's 10.5%. Earnings are expected to increase by 99.46% per year, with profitability anticipated in three years. Despite trading at a significant discount to its estimated fair value and high insider ownership indicating management confidence, recent share price volatility poses potential risks for investors.

KOSDAQ:A196170 Ownership Breakdown as at Oct 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 ₩4.23 billion.

Operations: The company's revenue segment is derived from Electronic Components & Parts, amounting to ₩348.75 million.

Insider Ownership: 19.4%

Earnings Growth Forecast: 155.2% p.a.

Enchem is projected to achieve profitability within three years, with revenue growth forecasted at 63% annually, outpacing the South Korean market's 10.5%. Earnings are expected to grow by 155.2% per year. Despite past shareholder dilution and recent share price volatility, high insider ownership suggests management confidence in its growth trajectory. However, investors should consider the potential risks associated with these factors when evaluating Enchem's investment prospects.

KOSDAQ:A348370 Ownership Breakdown as at Oct 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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