June 2024 Insight Into KRX Growth Companies With High Insider Ownership

After a period of decline, the South Korean stock market has shown signs of stabilization, with the KOSPI recently halting a three-day losing streak. This resilience in the broader market sets an interesting backdrop for exploring growth companies with high insider ownership, which can be indicative of confidence by those closest to the company’s operations and future prospects.

Top 10 Growth Companies With High Insider Ownership In South Korea

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

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

Simply Wall St Growth Rating: ★★★★★☆

Overview: People & Technology Inc. specializes in providing a range of machinery services including coating, calendaring, slitting, and automation, with a market capitalization of approximately ₩1.47 billion.

Operations: The company operates primarily in the machinery services sector, focusing on coating, calendaring, slitting, and automation.

Insider Ownership: 17.2%

People & Technology, a South Korean company, showcases strong growth prospects with its revenue and earnings expected to increase by 30% and 29.41% per year respectively, outpacing the local market averages. Despite substantial volatility in its share price over the past three months, the firm benefits from high insider ownership which aligns management’s interests with shareholders. Recent financial performance underlines this potential, having reported a significant 31.4% profit growth last year.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Doosan Corporation operates in heavy industry, machinery manufacturing, and apartment construction across South Korea, the United States, Asia, the Middle East, and Europe with a market capitalization of approximately ₩3.15 trillion.

Operations: The company’s revenue is derived from its involvement in heavy industry, machinery manufacturing, and apartment construction across various global regions.

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Insider Ownership: 34.3%

Doosan Corporation, despite its recent shift from a net loss to a net income of KRW 4.98 billion and improved earnings per share, faces challenges with its revenue growth projected at only 3.6% per year—significantly trailing the South Korean market average of 10.3%. However, the company is expected to become profitable within three years with an anticipated high return on equity of 22.2%, though it trades at 56.1% below estimated fair value and experiences high share price volatility.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hyosung Heavy Industries Corporation, with a market capitalization of ₩4.12 billion, engages in the manufacturing and international sale of heavy electrical equipment based in South Korea.

Operations: The company generates revenue through the production and global distribution of heavy electrical equipment.

Insider Ownership: 17.9%

Hyosung Heavy Industries has demonstrated robust earnings growth, surging by a very large percentage over the past year, with future earnings expected to grow at 32.26% annually. Despite this, its revenue growth is modest at 12% per year, slightly above the South Korean market average. The stock trades significantly below its estimated fair value but is burdened by high debt levels and a highly volatile share price. No recent insider trading activity has been reported.

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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.

Companies discussed in this article include KOSDAQ:A137400 KOSE:A000150 and KOSE:A298040.

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