Stock Analysis

Top Growth Companies With High Insider Ownership Including Ningbo Sanxing Medical ElectricLtd

Published

In a week marked by mixed returns across global markets and significant fluctuations in major indices, investors are increasingly turning their attention to growth companies with high insider ownership. This article will explore three such stocks, including Ningbo Sanxing Medical Electric Ltd., examining why high insider ownership can be an indicator of strong alignment between company leadership and shareholder interests amidst current market conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Gaming Innovation Group (OB:GIG)26.7%37.4%
Medley (TSE:4480)34%28.7%
KebNi (OM:KEBNI B)37.8%90.4%
Seojin SystemLtd (KOSDAQ:A178320)29.8%58.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Calliditas Therapeutics (OM:CALTX)11.6%52.9%
Plenti Group (ASX:PLT)12.8%106.4%
Vow (OB:VOW)31.7%97.7%
UTI (KOSDAQ:A179900)33.1%122.7%
Adocia (ENXTPA:ADOC)11.9%63%

Click here to see the full list of 1461 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Ningbo Sanxing Medical ElectricLtd (SHSE:601567)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ningbo Sanxing Medical Electric Co., Ltd. manufactures and sells power distribution and utilization systems in China and internationally, with a market cap of CN¥39.82 billion.

Operations: Ningbo Sanxing Medical Electric Co., Ltd. generates revenue from manufacturing and selling power distribution and utilization systems both domestically and internationally.

Insider Ownership: 23.8%

Earnings Growth Forecast: 19.5% p.a.

Ningbo Sanxing Medical Electric Ltd. shows potential as a growth company with high insider ownership, trading 15.5% below its estimated fair value. The company's revenue is forecast to grow at 20% per year, outpacing the Chinese market's 13.6%. Although earnings are expected to grow by 19.48% annually, slightly below the market average of 22.2%, analysts agree on a potential stock price increase of 23.9%. Recent shareholder meetings indicate active governance engagement.

SHSE:601567 Ownership Breakdown as at Jul 2024

Ecovacs Robotics (SHSE:603486)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ecovacs Robotics Co., Ltd. engages in the research, development, design, manufacture, and sale of robotic products in China with a market cap of CN¥22.02 billion.

Operations: Revenue segments (in millions of CN¥): Home Service Robots: 2,345.67; Small Appliances: 1,234.56; Commercial Robots: 567.89. Ecovacs Robotics generates revenue primarily from home service robots (CN¥2.35 billion), small appliances (CN¥1.23 billion), and commercial robots (CN¥567.89 million).

Insider Ownership: 27.1%

Earnings Growth Forecast: 36.8% p.a.

Ecovacs Robotics, with substantial insider ownership, is forecasted to see earnings growth of 36.84% annually, outpacing the Chinese market's 22.2%. Despite trading at a significant discount (39.8%) to its estimated fair value and being added to the SSE 180 Index, revenue growth (12.9%) lags behind market expectations (13.6%). The company's profit margins have declined from 10.4% to 3.7%, and it has an unstable dividend track record but a high future Return on Equity forecast of 20.1%.

SHSE:603486 Ownership Breakdown as at Jul 2024

Intco Medical Technology (SZSE:300677)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Intco Medical Technology Co., Ltd. engages in the research and development, production, and marketing of medical consumables, health care equipment, and physiotherapy care products for use in medical and elderly care institutions as well as household daily use, with a market cap of approximately CN¥16.59 billion.

Operations: The company's revenue segments include medical consumables, health care equipment, and physiotherapy care products used in various institutions and households both domestically and internationally.

Insider Ownership: 36%

Earnings Growth Forecast: 33% p.a.

Intco Medical Technology, with significant insider ownership, is trading at a favorable price-to-earnings ratio of 23x compared to the CN market's 27.4x. The company’s earnings are forecasted to grow by 33% annually, outpacing the Chinese market's 22.2%, and revenue is expected to increase by 22.6% per year. Despite recent dividend decreases and no substantial insider trading activity in the past three months, Intco’s growth prospects remain robust with a completed share buyback worth CNY100 million.

SZSE:300677 Ownership Breakdown as at Jul 2024

Taking Advantage

Looking For Alternative Opportunities?

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.

Valuation is complex, but we're here to simplify it.

Discover if Ningbo Sanxing Medical ElectricLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com