KRX Growth Leaders With High Insider Stakes July 2024

After a period of decline, the South Korean stock market has shown signs of stabilization, with the KOSPI recently breaking a four-day losing streak. In this context, companies with high insider ownership can be particularly interesting as these stakeholders often have a vested interest in the company's long-term success, which may align well with current market conditions that favor cautious optimism amidst global economic uncertainties.

Top 10 Growth Companies With High Insider Ownership In South Korea

Name	Insider Ownership	Earnings Growth
ALTEOGEN (KOSDAQ:A196170)	26.6%	73.1%
Fine M-TecLTD (KOSDAQ:A441270)	17.2%	36.4%
Global Tax Free (KOSDAQ:A204620)	18.1%	72.4%
Seojin SystemLtd (KOSDAQ:A178320)	29.8%	58.7%
Park Systems (KOSDAQ:A140860)	33%	36.3%
Vuno (KOSDAQ:A338220)	19.5%	105%
UTI (KOSDAQ:A179900)	33.1%	122.7%
INTEKPLUS (KOSDAQ:A064290)	16.3%	77.4%
HANA Micron (KOSDAQ:A067310)	20%	99.6%
Techwing (KOSDAQ:A089030)	18.7%	77.8%

Click here to see the full list of 80 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

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

Genomictree (KOSDAQ:A228760)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Genomictree Inc. is a South Korean biomarker-based molecular diagnostics company focused on developing products for cancer detection and infectious diseases, with a market capitalization of approximately ₩510.82 billion.

Operations: The company generates revenue primarily through its Cancer Molecular Diagnosis segment, which brought in ₩1.86 billion, and its Genomic Analysis segment, contributing ₩0.68 billion.

Insider Ownership: 16.2%

Earnings Growth Forecast: 98.5% p.a.

Genomictree, despite its modest revenue of ₩3B and a highly volatile share price, is on a promising trajectory with expected profitability within the next three years. The company's projected annual revenue growth rate is significantly high at 81%, outpacing the South Korean market average. However, challenges include shareholder dilution over the past year and a low forecasted return on equity of 3.7%. Additionally, it's currently trading at a substantial 45.3% below its estimated fair value.

• Click here and access our complete growth analysis report to understand the dynamics of Genomictree.
• Upon reviewing our latest valuation report, Genomictree's share price might be too pessimistic.

Shinsung E&GLtd (KOSE:A011930)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shinsung E&G Ltd. specializes in providing solar modules and systems both domestically in Korea and internationally, with a market capitalization of approximately ₩389.63 billion.

Operations: The company generates revenue primarily through its Renewable Energy and Clean Environment divisions, with ₩0.53 billion from renewable energy and ₩533.30 billion from environmental solutions.

Insider Ownership: 19.2%

Earnings Growth Forecast: 84.4% p.a.

Shinsung E&G Ltd. is poised for substantial growth with forecasted earnings increasing by 84.4% annually, significantly outpacing the South Korean market's average. However, its recent financial results have been impacted by large one-off items, and its profit margins have declined from last year's 8.2% to just 0.7%. Additionally, the company's return on equity is expected to remain low at 14.2%, and it struggles with covering interest payments through earnings despite trading at a value deemed 30.4% below its fair estimate.

• Unlock comprehensive insights into our analysis of Shinsung E&GLtd stock in this growth report.
• Our valuation report here indicates Shinsung E&GLtd may be overvalued.

Lotte Tour Development (KOSE:A032350)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lotte Tour Development Co., Ltd. operates in the travel and tourism industry in South Korea, with a market capitalization of approximately ₩772.63 billion.

Operations: The company generates revenue through its Dream Tower Integrated Resort Division (₩302.75 billion), Travel Related Service Sector excluding Internet Journalism (₩67.80 billion), and Internet Media Sector (₩2.12 billion).

Insider Ownership: 29.5%

Earnings Growth Forecast: 110.2% p.a.

Lotte Tour Development is projected to experience robust revenue growth at 17.4% annually, outstripping the South Korean market average of 10.5%. Despite trading at a significant discount of 43.7% below its estimated fair value, challenges persist as the company is expected to remain unprofitable for three years. Additionally, shareholder equity has been diluted over the past year, although it's anticipated to turn profitable within three years with an above-market average profit growth rate.

• Take a closer look at Lotte Tour Development's potential here in our earnings growth report.
• In light of our recent valuation report, it seems possible that Lotte Tour Development is trading behind its estimated value.

Taking Advantage

• Click here to access our complete index of 80 Fast Growing KRX Companies With High Insider Ownership.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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