Three growth stocks with high insider ownership in KRX

The South Korean market is up 1.9% over the past 7 days, driven by gains in the financials and IT sectors, up 5.7% and 1.4%, respectively. In light of this positive momentum and a projected 29% annual earnings increase, identifying growth stocks with high insider ownership can be particularly beneficial for investors looking for a strong alignment between management interests and shareholder value.

Top 10 High Insider Growth Companies in South Korea

Click here to see the full list of 91 stocks in our KRX high growth stocks screener with high insider ownership.

Let’s take a look at some of the standout options based on the scan results.

Simply Wall St Growth Rating: ★★★★★☆☆

Review: Medy-Tox Inc. is a South Korean biopharmaceutical company with a market capitalization of 1.44 trillion yen.

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

Internal property: 19.8%

Revenue growth forecast: 12.4% per year

Medy-Tox, a South Korean growth stock with a large insider stake, is trading at 55.8% below its estimated fair value. While its revenue is forecast to grow 12.4% annually, slower than the desired 20%, earnings are expected to grow a significant 63.91% annually over the next three years, outpacing the market average of 28.5%. However, profit margins have fallen from 18.5% last year to just 0.8%, and the stock has been very volatile recently.

Simply Wall St Growth Rating: ★★★★★☆

Review: SungEel HiTech Co., Ltd. operates as a battery recycling company in South Korea and has a market capitalization of 673.50 billion pesos.

Operations: The company’s revenue includes 232.20 billion yen from the production of raw materials for secondary batteries and a consolidation adjustment of -32.71 million yen.

Internal property: 38%

Revenue growth forecast: 35% per year

SungEel HiTech’s profits are forecast to grow 49.17% annually, far outpacing the South Korean market average of 28.5%. Revenue is expected to grow 35% annually, faster than the market’s 10.4%. However, profit margins have fallen to 3.4% from 12.5% ​​last year, and return on equity is expected to be low at 7.6%. Furthermore, covering debt with cash flow from operations remains a concern for the company’s financial health.

The story continues

Simply Wall St Growth Rating: ★★★★★☆☆

Review: Foosung Co., Ltd., together with its subsidiaries, manufactures and sells chemical products for various industries including automotive, steel, semiconductor, construction and environmental in South Korea, with a market capitalization of 705.74 billion pesos.

Operations: The company’s revenue segments include chemical equipment (178.79 million yen) and fluorine compounds (318.50 million yen).

Internal property: 32.9%

Revenue growth forecast: 13.8% per year

Foosung’s revenue is expected to grow by 13.8% annually, outpacing the South Korean market’s 10.4%. The company is expected to become profitable within three years, with profits expected to increase by 73.65% annually. The latest earnings reports show significant improvement, with second-quarter sales reaching KRW 956.59 million and net income turning positive at KRW 14,428.32 million compared to a loss last year. However, debt coverage remains a concern, and shareholders experienced dilution last year.

To sum it all up

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This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. Our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please 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 of the stocks mentioned. The analysis only includes shares directly held by insiders. It does not include shares held indirectly through other entities such as corporate and/or trusts. All projected revenue and earnings growth rates are provided as annual growth rates over a 1-3 year period.

This article discusses the following companies, among others: KOSDAQ:A086900, KOSDAQ:A365340 and KOSE:A093370.

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