Stock Analysis

3 Growth Companies With High Insider Ownership And 113% Earnings Growth

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As global markets navigate a landscape marked by cooling U.S. inflation and strong bank earnings, major indices have rebounded, with value stocks outperforming growth shares amid shifting economic signals. In this context, identifying growth companies with high insider ownership can be a strategic approach, as such ownership often aligns management interests with shareholder value and may indicate confidence in the company's future prospects.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Archean Chemical Industries (NSEI:ACI)22.9%41.2%
Clinuvel Pharmaceuticals (ASX:CUV)10.4%26.2%
People & Technology (KOSDAQ:A137400)16.4%37.3%
SKS Technologies Group (ASX:SKS)29.7%24.8%
Medley (TSE:4480)34%27.2%
Plenti Group (ASX:PLT)12.7%120.1%
Fine M-TecLTD (KOSDAQ:A441270)17.2%135%
HANA Micron (KOSDAQ:A067310)18.3%110.9%
Findi (ASX:FND)35.8%110.7%

Click here to see the full list of 1464 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Beijing Fourth Paradigm Technology (SEHK:6682)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beijing Fourth Paradigm Technology Co., Ltd. is an investment holding company offering platform-centric artificial intelligence solutions in China, with a market cap of HK$19.85 billion.

Operations: The company's revenue segments include CN¥3 billion from the Sage AI Platform, CN¥448.10 million from Sagegpt Aigs Services, and CN¥1.15 billion from Shift Intelligent Solutions.

Insider Ownership: 22.8%

Earnings Growth Forecast: 113.1% p.a.

Beijing Fourth Paradigm Technology is poised for significant growth, with earnings forecasted to expand at 113.12% annually and revenue projected to increase by 19.3% per year, outpacing the Hong Kong market average. Despite a volatile share price recently and a low future return on equity of 2.4%, the company is expected to become profitable within three years. Recent executive changes include Mr. Peng Jun's appointment as joint company secretary, enhancing their strategic management team.

SEHK:6682 Earnings and Revenue Growth as at Jan 2025

Zhejiang Truelove Vogue (SZSE:003041)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Truelove Vogue Co., Ltd. engages in the research and development, design, manufacture, and sale of blankets in China with a market cap of CN¥4.28 billion.

Operations: Revenue Segments (in millions of CN¥): Zhejiang Truelove Vogue Co., Ltd. focuses on the research and development, design, production, and distribution of blankets within the Chinese market.

Insider Ownership: 10.2%

Earnings Growth Forecast: 69.6% p.a.

Zhejiang Truelove Vogue is set for significant earnings growth at 69.6% annually, surpassing the Chinese market's average. However, recent financials reveal a decline in net income to CNY 56.14 million from CNY 83.04 million year-on-year, with revenue also dropping to CNY 623.41 million from CNY 700.23 million. The company's profit margins have decreased to 9% from last year's 15%, and its dividend yield of 1.34% isn't well covered by free cash flows, indicating potential financial challenges ahead despite high growth expectations.

SZSE:003041 Earnings and Revenue Growth as at Jan 2025

Sichuan Chuanhuan TechnologyLtd (SZSE:300547)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sichuan Chuanhuan Technology Co., Ltd. specializes in the research, development, production, and sale of automotive rubber hose products in China with a market cap of CN¥5.89 billion.

Operations: The company's revenue is primarily derived from its Non-Tire Rubber Products segment, which generated CN¥1.30 billion.

Insider Ownership: 24.5%

Earnings Growth Forecast: 21.4% p.a.

Sichuan Chuanhuan Technology Ltd. is poised for earnings growth of 21.45% annually, though slightly below the broader Chinese market's forecast. Its revenue growth at 21% is expected to outpace the market average, indicating strong operational momentum despite a volatile share price recently. The company's price-to-earnings ratio of 29.3x suggests good value compared to the CN market's 34.9x, but its dividend track record remains unstable amidst recent profit distribution announcements and meetings affirming a CNY 1.40 dividend per 10 shares for Q3 2024.

SZSE:300547 Ownership Breakdown as at Jan 2025

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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.

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