Over the last 7 days, the South Korean market has dropped 4.2%, driven by a decline of 8.4% in the Information Technology sector, while overall the market has been flat in the last year and earnings are forecast to grow by 29% annually. In this context, identifying high-growth tech stocks that can outperform despite current volatility becomes crucial for investors looking to capitalize on future earnings potential.
Top 10 High Growth Tech Companies In South Korea
|
Name |
Revenue Growth |
Earnings Growth |
Growth Rating |
|---|---|---|---|
|
Seojin SystemLtd |
33.61% |
52.05% |
★★★★★★ |
|
IMLtd |
21.80% |
111.43% |
★★★★★★ |
|
Bioneer |
23.53% |
97.58% |
★★★★★★ |
|
FLITTO |
32.60% |
106.82% |
★★★★★★ |
|
ALTEOGEN |
64.22% |
99.46% |
★★★★★★ |
|
NEXON Games |
29.64% |
66.98% |
★★★★★★ |
|
Park Systems |
23.64% |
35.66% |
★★★★★★ |
|
Devsisters |
29.08% |
63.02% |
★★★★★★ |
|
AmosenseLtd |
24.04% |
71.97% |
★★★★★★ |
|
UTI |
114.97% |
134.61% |
★★★★★★ |
Click here to see the full list of 48 stocks from our KRX High Growth Tech and AI Stocks screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Wemade Co., Ltd. develops and publishes games both in South Korea and internationally, with a market cap of ₩1.16 trillion.
Operations: Wemade Co., Ltd. generates revenue primarily from developing and publishing games in both domestic and international markets, leveraging a diverse portfolio of gaming titles. The company operates with a market cap of ₩1.16 trillion.
Wemade Ltd. is making significant strides in the blockchain gaming sector with its WEMIX ecosystem, powered by WEMIX3.0, which supports dApps, GameFi, DAOs, DeFi, and NFTs. Despite a net loss of ₩51.6 billion in Q2 2024 and sales of ₩332.7 billion for the same period, the company’s revenue has shown a year-over-year increase from ₩159.28 billion to ₩171.39 billion over six months. R&D expenses are crucial here; they reflect Wemade’s commitment to innovation in blockchain technology and gaming ecosystems. The company’s forecasted earnings growth rate of 106.57% per year indicates potential profitability within three years despite current unprofitability and negative free cash flow status. The strategic direction set during WEMIX DAY highlights ongoing initiatives aimed at solidifying their ecosystem while enhancing user experience through WEMIX PLAY rejuvenation efforts—this could significantly impact future business prospects as they aim for a more sustainable gaming environment.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Lotte Energy Materials Corporation, with a market cap of ₩1.98 trillion, produces and sells elecfoils both in Korea and internationally.
Operations: Lotte Energy Materials Corporation generates revenue primarily from its Manufacturing Sector, which contributes ₩768.85 billion, and the Service Sector, adding ₩218.48 billion.
Lotte Energy Materials is making notable advancements in the tech sector, particularly with its focus on energy storage solutions. Recent R&D expenditures reached ₩53.7 billion, reflecting a strong commitment to innovation and future growth. Revenue projections indicate a 16.3% annual increase, outpacing the broader South Korean market’s 10.6%. Earnings are expected to grow at an impressive rate of 53.7% annually over the next three years, suggesting robust future profitability despite current challenges in scaling operations effectively.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Solum Co., Ltd. manufactures and markets power modules, digital tuners, and electronic shelf labels to customers in South Korea and internationally with a market cap of ₩971.86 billion.
Operations: The company’s revenue is primarily driven by its ICT Business, generating ₩470.84 million, and the Electronic Components Division, contributing ₩1.16 billion. The diverse product portfolio includes power modules, digital tuners, and electronic shelf labels for both domestic and international markets.
Solum’s focus on innovation is evident with R&D expenses reaching ₩53.7 billion, driving a forecasted annual revenue growth of 13.9%, outpacing the South Korean market’s 10.6%. Earnings are expected to surge by 36.3% annually, highlighting strong future profitability despite a past year earnings drop of -37.1%. The company recently announced a share repurchase program worth ₩20 billion to enhance shareholder value and stabilize stock prices, reflecting confidence in its financial health and growth prospects.
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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.
Companies discussed in this article include KOSDAQ:A112040 KOSE:A020150 and KOSE:A248070.
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