Exploring 3 High Growth Tech Stocks in South Korea

Over the last 7 days, the South Korean market has risen 2.5%, and it is up 4.6% over the last 12 months, with earnings forecasted to grow by 29% annually. In this favorable environment, identifying high-growth tech stocks can offer promising opportunities for investors looking to capitalize on South Korea’s dynamic technology sector.

Top 10 High Growth Tech Companies In South Korea

Click here to see the full list of 49 stocks from our KRX High Growth Tech and AI Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Simply Wall St Growth Rating: ★★★★★★

Overview: UTI Inc. specializes in the research, development, manufacture, and sale of smartphone camera windows and sensor glasses both in South Korea and internationally, with a market cap of ₩359.15 billion.

Operations: The company focuses on the research, development, manufacture, and sale of smartphone camera windows and sensor glasses. Revenue from electronic components and parts amounts to ₩19.97 billion.

UTI, a South Korean tech firm, is tapping into significant growth opportunities with its aggressive R&D investments and strategic funding initiatives. Recently securing KRW 2.7 billion from convertible preferred stocks and an additional KRW 6.3 billion through private placement bonds, UTI is fueling its innovation pipeline. This financial infusion supports their projected revenue surge of 115% annually and an impressive earnings growth forecast at 134.6% per year. With R&D expenses scaling in tandem with these developments, UTI’s commitment to technological advancement is clear as they aim to transition from unprofitable to a profitable entity within three years, outpacing the market’s average growth expectations significantly.

Simply Wall St Growth Rating: ★★★★★★

Overview: ALTEOGEN Inc., a biotechnology company, specializes in developing long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars, with a market cap of ₩17.56 billion.

Operations: The company generates revenue primarily from its biotechnology segment, amounting to ₩90.79 million. Its focus includes long-acting biobetters, proprietary antibody-drug conjugates, and antibody biosimilars.

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ALTEOGEN, a South Korean biotech firm, is poised for significant growth with its recent MFDS approval of Tergase®, developed using its proprietary Hybrozyme™ Technology. This product stands out in the market with over 99% purity and reduced immunogenicity compared to traditional animal-derived hyaluronidases, opening new applications in medical fields previously untapped. Financially, ALTEOGEN’s aggressive R&D strategy is evident as it allocates substantial resources to innovation—R&D expenses have been crucial in supporting its pipeline developments. With revenue forecasted to grow at 64.2% annually and earnings expected to surge by 99.5% per year, the company’s strategic focus on high-purity biologics could set a new standard in the industry while transitioning into profitability within three years.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Celltrion, Inc., along with its subsidiaries, specializes in developing and producing protein-based drugs for oncology treatment in South Korea, with a market cap of ₩41.27 billion.

Operations: Celltrion, Inc., with a market cap of ₩41.27 billion, generates revenue primarily from its Bio Medical Supply segment (₩3.54 trillion) and Chemical Drugs segment (₩507 billion). The company focuses on developing and producing protein-based oncology drugs in South Korea.

Celltrion, amid a challenging landscape, has been making strategic moves to secure its position in the biotech sector. With an R&D focus reflected by a 25.5% annual increase in revenue, the company is outpacing the South Korean market average growth of 10.5%. This investment in innovation is critical as it navigates recent earnings volatility, marked by a significant 59.6% expected annual growth in earnings over the next three years despite recent dips. Recent partnerships with major healthcare providers like Cigna and Express Scripts underscore its commitment to expanding access to its biosimilars, enhancing its competitive edge and presence in global markets.

Next Steps

• Gain an insight into the universe of 49 KRX High Growth Tech and AI Stocks by clicking here.

• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St’s portfolio, where intuitive tools await to help optimize your investment outcomes.

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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:A179900 KOSDAQ:A196170 and KOSE:A068270.

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