Stock Analysis

3 High Growth Companies Insiders Are Betting On

SZSE:300438
Source: Shutterstock

As global markets continue to recover from recent sell-offs, investors are increasingly optimistic about the potential for a "soft landing" in the U.S. economy. Growth stocks have notably outperformed value shares, driven by positive developments in sectors like technology and consumer discretionary. In this favorable market environment, identifying growth companies with high insider ownership can be particularly compelling. Insider ownership often signals confidence in a company's future prospects, making these stocks worth considering for those looking to capitalize on current market trends.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.2%
Cettire (ASX:CTT)28.7%26.7%
Gaming Innovation Group (OB:GIG)26.7%37.4%
On Holding (NYSE:ONON)28.4%24.7%
KebNi (OM:KEBNI B)37.8%86.1%
Calliditas Therapeutics (OM:CALTX)12.7%51.9%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Adocia (ENXTPA:ADOC)11.9%63%
Vow (OB:VOW)31.7%97.7%
EHang Holdings (NasdaqGM:EH)32.8%74.9%

Click here to see the full list of 1489 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Duc Giang Chemicals Group (HOSE:DGC)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Duc Giang Chemicals Group Joint Stock Company, with a market cap of ₫42.54 trillion, provides industrial chemical products in Vietnam.

Operations: Revenue Segments (in millions of ₫): Phosphorus and derivatives: ₫5,000,000; Detergent chemicals: ₫3,500,000; Fertilizers: ₫2,200,000; Mining and processing services: ₫1,800,000. Duc Giang Chemicals Group generates revenue from phosphorus and derivatives (₫5.00 billion), detergent chemicals (₫3.50 billion), fertilizers (₫2.20 billion), and mining and processing services (₫1.80 billion).

Insider Ownership: 31.4%

Duc Giang Chemicals Group shows strong growth potential with substantial insider ownership, trading at 41.4% below its estimated fair value. Despite a slight dip in six-month net income to VND 1.52 trillion, earnings are forecast to grow significantly at 21.61% annually over the next three years, outpacing the VN market's average. However, its dividend yield of 3.55% is not well-covered by earnings, suggesting some caution for income-focused investors.

HOSE:DGC Earnings and Revenue Growth as at Aug 2024
HOSE:DGC Earnings and Revenue Growth as at Aug 2024

Thonburi Healthcare Group (SET:THG)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Thonburi Healthcare Group Public Company Limited, along with its subsidiaries, operates private hospitals in Thailand and has a market cap of THB24.36 billion.

Operations: The company's revenue segments include Hospital Operations (THB8.44 billion), Hospital Management (THB773.28 million), Healthcare Solution Provider (THB381.29 million), and Development and Sales of Hospital Operation Software (THB36.84 million).

Insider Ownership: 38.3%

Thonburi Healthcare Group exhibits strong growth potential with high insider ownership, despite recent challenges. The company reported a decline in net income for Q2 2024 to THB 42.83 million from THB 128.19 million a year ago, impacting profit margins significantly. However, earnings are forecast to grow at an impressive rate of 75.61% annually over the next three years, outpacing the Thai market average of 15.1%. Recent fixed-income offerings totaling THB 1.7 billion support its expansion plans.

SET:THG Ownership Breakdown as at Aug 2024
SET:THG Ownership Breakdown as at Aug 2024

Guangzhou Great Power Energy and Technology (SZSE:300438)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangzhou Great Power Energy and Technology Co., Ltd researches, develops, produces, and sells various batteries in China with a market cap of CN¥8.26 billion.

Operations: The company generates revenue from the research, development, production, and sale of various batteries in China.

Insider Ownership: 34.5%

Guangzhou Great Power Energy and Technology shows promising growth potential with high insider ownership. Revenue is forecast to grow 19.3% annually, outpacing the Chinese market's 13.4% growth rate, though slightly below the 20% mark often associated with high-growth companies. The company is expected to become profitable within three years, a significant milestone given its current trajectory. However, shareholders have experienced dilution over the past year, which may temper some investor enthusiasm.

SZSE:300438 Ownership Breakdown as at Aug 2024
SZSE:300438 Ownership Breakdown as at Aug 2024

Where To Now?

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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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