Stock Analysis

Unveiling Three KRX Growth Companies With High Insider Ownership

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The South Korean stock market recently halted its brief winning streak, reflecting a cautious sentiment that also resonated across global markets, particularly affecting technology and semiconductor sectors. Amid these fluctuations, investors might find value in companies with high insider ownership, which can signal strong confidence in the company's future from those who know it best.

Top 10 Growth Companies With High Insider Ownership In South Korea

NameInsider OwnershipEarnings Growth
ALTEOGEN (KOSDAQ:A196170)26.6%73.1%
Seojin SystemLtd (KOSDAQ:A178320)29.8%58.7%
Fine M-TecLTD (KOSDAQ:A441270)17.2%36.4%
Global Tax Free (KOSDAQ:A204620)18.1%72.4%
Park Systems (KOSDAQ:A140860)33%35.6%
Vuno (KOSDAQ:A338220)19.5%105%
UTI (KOSDAQ:A179900)34.1%122.7%
HANA Micron (KOSDAQ:A067310)20%96.3%
INTEKPLUS (KOSDAQ:A064290)16.3%77.4%
Techwing (KOSDAQ:A089030)18.7%77.8%

Click here to see the full list of 81 stocks from our Fast Growing KRX Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

UTI (KOSDAQ:A179900)

Simply Wall St Growth Rating: ★★★★★★

Overview: UTI Inc. specializes in the research, development, production, and distribution of smartphone camera windows and sensor glasses both domestically in South Korea and globally, with a market capitalization of approximately ₩503.13 billion.

Operations: The company generates revenue primarily from the development and sales of smartphone camera windows and sensor glasses.

Insider Ownership: 34.1%

Return On Equity Forecast: 71% (2027 estimate)

UTI Inc., a South Korean growth company with significant insider ownership, has recently engaged in substantial private placements, indicating strong investor confidence and strategic capital reinforcement. On May 20 and June 26, 2024, UTI issued convertible preferred stock totaling KRW 80 billion. These funds are earmarked for technological advancements and market expansion. Despite its highly volatile share price, UTI's revenue is expected to grow by 103.6% annually, outpacing the national market growth rate significantly. Moreover, the company is projected to become profitable within three years with an exceptionally high forecasted return on equity of 71.4%. This financial trajectory suggests robust future performance although current profitability has not been achieved.

KOSDAQ:A179900 Earnings and Revenue Growth as at Jul 2024

ALTEOGEN (KOSDAQ:A196170)

Simply Wall St Growth Rating: ★★★★★★

Overview: ALTEOGEN Inc. is a biopharmaceutical company engaged in developing long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars, with a market capitalization of approximately ₩14.56 trillion.

Operations: The company generates revenue primarily from the development of long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars.

Insider Ownership: 26.6%

Return On Equity Forecast: 45% (2027 estimate)

ALTEOGEN, a South Korean biotech firm, showcases rapid growth with its revenue and earnings expected to outpace the local market significantly. Recently achieving profitability, the company's future looks promising with a forecasted high return on equity. However, shareholder dilution occurred over the past year and the share price remains volatile. Adding to its potential, ALTEOGEN received MFDS approval for Tergase®, a high-purity biologic with broad application prospects, positioning it well in competitive markets.

KOSDAQ:A196170 Ownership Breakdown as at Jul 2024

APR (KOSE:A278470)

Simply Wall St Growth Rating: ★★★★★☆

Overview: APR Co., Ltd is a South Korean company that manufactures and sells cosmetics for both men and women, with a market capitalization of approximately ₩2.27 billion.

Operations: The company's revenue is derived from the manufacture and sale of cosmetics targeting both male and female consumers.

Insider Ownership: 34.2%

Return On Equity Forecast: 35% (2027 estimate)

APR Co., Ltd., a South Korean company, is trading 37.3% below its estimated fair value, with analysts predicting a 48% price increase. Its revenue growth at 23% per year surpasses the local market's 10.7%, and earnings are expected to grow by 25.34% annually. Despite high volatility in its share price, APR recently announced a KRW 60 billion buyback plan to stabilize its stock and enhance shareholder value, signaling strong insider confidence even without recent insider trading data.

KOSE:A278470 Ownership Breakdown as at Jul 2024

Key Takeaways

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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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