KRX Growth Companies With High Insider Ownership And Up To 111% Earnings Growth

The South Korean stock market recently halted its two-day winning streak, reflecting a mix of sector-specific performances and broader economic indicators. As the KOSPI steadies itself above the 2,780-point mark, investors continue to navigate through varying signals from global and domestic fronts. In such a market environment, growth companies with high insider ownership can be particularly compelling as they often indicate confidence from those who know the company best amidst uncertain economic conditions.

Top 10 Growth Companies With High Insider Ownership In South Korea

Name	Insider Ownership	Earnings Growth
ALTEOGEN (KOSDAQ:A196170)	26.6%	73.1%
Global Tax Free (KOSDAQ:A204620)	18.1%	72.4%
Fine M-TecLTD (KOSDAQ:A441270)	17.3%	36.4%
Park Systems (KOSDAQ:A140860)	33.1%	35.8%
Seojin SystemLtd (KOSDAQ:A178320)	26.4%	48.1%
UTI (KOSDAQ:A179900)	34.1%	122.7%
Vuno (KOSDAQ:A338220)	19.5%	103.8%
HANA Micron (KOSDAQ:A067310)	20%	94.1%
INTEKPLUS (KOSDAQ:A064290)	16.3%	77.4%
Techwing (KOSDAQ:A089030)	18.7%	118.2%

Click here to see the full list of 87 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.

ITM Semiconductor

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ITM Semiconductor Co., Ltd., based in South Korea, specializes in manufacturing and selling components for secondary batteries globally, with a market capitalization of approximately ₩484.61 billion.

Operations: The firm operates primarily in the production and global sales of secondary battery components.

Insider Ownership: 15%

Earnings Growth Forecast: 60% p.a.

ITM Semiconductor, a South Korean company, is navigating a challenging yet potentially rewarding phase. Recent insider transactions and share buybacks indicate active management involvement, with BJ Ventures increasing its stake by acquiring shares worth KRW 15 billion. Despite reporting a significant reduction in net loss from KRW 13.55 billion to KRW 3.99 billion year-over-year and sales of KRW 912.06 million, the company's debt is poorly covered by operating cash flow, reflecting financial vulnerability. However, ITM is expected to grow earnings nearly 60% annually and transition into profitability within three years, outpacing average market growth forecasts.

• Click to explore a detailed breakdown of our findings in ITM Semiconductor's earnings growth report.

• Our comprehensive valuation report raises the possibility that ITM Semiconductor is priced lower than what may be justified by its financials.

KOSDAQ:A084850 Earnings and Revenue Growth as at Jun 2024

Selvas AI

Simply Wall St Growth Rating: ★★★★★☆

Overview: Selvas AI Inc. is an artificial intelligence company based in South Korea, with a market capitalization of approximately ₩398.33 billion.

Operations: Selvas AI generates revenue through several segments, including assistive technology equipment (₩14.04 billion), artificial intelligence-based technology (₩8.21 billion), manufacturing and sales of medical devices (₩15.50 billion), and artificial intelligence application solutions, including electronic dictionaries (₩15.58 billion).

Insider Ownership: 13.1%

Earnings Growth Forecast: 111.9% p.a.

Selvas AI, a South Korean growth company with high insider ownership, is trading at 85.7% below its estimated fair value, presenting a potentially undervalued opportunity despite recent shareholder dilution. The company's revenue growth is impressive at 45.1% annually, significantly outpacing the market average of 10.5%. Although it reported a net loss in Q1 2024 with sales doubling to KRW 27.24 billion from the previous year, Selvas AI is expected to become profitable within three years and forecasts an earnings growth rate of 111.91% annually.

• Click here and access our complete growth analysis report to understand the dynamics of Selvas AI.

• The valuation report we've compiled suggests that Selvas AI's current price could be quite moderate.

KOSDAQ:A108860 Ownership Breakdown as at Jun 2024

D.I

Simply Wall St Growth Rating: ★★★★★★

Overview: D.I Corporation, a company based in South Korea, specializes in manufacturing and supplying semiconductor inspection equipment both domestically and internationally, with a market capitalization of approximately ₩688.85 billion.

Operations: The firm specializes in the production and distribution of semiconductor inspection equipment across global markets.

Insider Ownership: 32%

Earnings Growth Forecast: 80.5% p.a.

D.I Corporation, a South Korean growth company with high insider ownership, recently raised KRW 20 billion through convertible bonds to potentially fuel its expansion. The company's revenue is expected to grow at 38.1% annually, surpassing the market average significantly. Despite this robust growth forecast and a promising return on equity projected at 28.5%, D.I faces challenges such as highly volatile share prices and low profit margins of just 0.4%, down from last year’s 5.1%.

• Get an in-depth perspective on D.I's performance by reading our analyst estimates report here.

• The analysis detailed in our D.I valuation report hints at an inflated share price compared to its estimated value.

KOSE:A003160 Earnings and Revenue Growth as at Jun 2024

Taking Advantage

• Reveal the 87 hidden gems among our Fast Growing KRX Companies With High Insider Ownership screener with a single click here.

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Contemplating Other Strategies?

• 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.

Companies discussed in this article include KOSDAQ:A084850 KOSDAQ:A108860 and KOSE:A003160.

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