Spotlighting Longhua Technology GroupLtd And 2 Other Insider-Favored Growth Stocks

As global markets navigate a landscape of fluctuating interest rates and mixed economic signals, the U.S. indices have shown resilience with notable gains in the S&P 500 and Nasdaq Composite, driven by sectors like utilities, real estate, and technology. In this environment of cautious optimism, stocks with high insider ownership often catch investors' attention due to their potential alignment of interests between company executives and shareholders.

Top 10 Growth Companies With High Insider Ownership

Name	Insider Ownership	Earnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)	11.9%	21.1%
Archean Chemical Industries (NSEI:ACI)	22.9%	34%
Kirloskar Pneumatic (BSE:505283)	30.3%	30.1%
People & Technology (KOSDAQ:A137400)	16.4%	35.6%
Arctech Solar Holding (SHSE:688408)	37.8%	29.8%
Seojin SystemLtd (KOSDAQ:A178320)	30.7%	49.1%
Medley (TSE:4480)	34%	30.4%
HANA Micron (KOSDAQ:A067310)	18.3%	105.8%
Adveritas (ASX:AV1)	21.2%	144.2%
Plenti Group (ASX:PLT)	12.8%	106.4%

Click here to see the full list of 1485 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Longhua Technology GroupLtd (SZSE:300263)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Longhua Technology Group Co., Ltd. manufactures and sells heat transfer and energy-saving equipment in China, with a market cap of CN¥6.26 billion.

Operations: Unfortunately, the provided text does not include specific revenue segment data for Longhua Technology Group Co., Ltd.

Insider Ownership: 22.4%

Revenue Growth Forecast: 17.8% p.a.

Longhua Technology Group Ltd. recently appointed new directors and supervisors, indicating active insider involvement. Despite a slight dip in net income to CNY 105.46 million for the first half of 2024, revenue showed modest growth to CNY 1.22 billion. The company's earnings are forecasted to grow significantly at 38.1% annually, outpacing the Chinese market average of 23.8%. While insider trading activity is minimal, substantial insider ownership may align management's interests with shareholders'.

• Click to explore a detailed breakdown of our findings in Longhua Technology GroupLtd's earnings growth report.
• In light of our recent valuation report, it seems possible that Longhua Technology GroupLtd is trading beyond its estimated value.

Guangdong Dowstone Technology (SZSE:300409)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Dowstone Technology Co., Ltd. produces and sells lithium battery, carbon, and ceramic materials both in China and internationally, with a market cap of CN¥7.06 billion.

Operations: The company generates revenue from the production and sale of lithium battery, carbon, and ceramic materials in both domestic and international markets.

Insider Ownership: 29.1%

Revenue Growth Forecast: 20.9% p.a.

Guangdong Dowstone Technology has shown a turnaround with net income of CNY 110.68 million for the first half of 2024, compared to a loss last year. Revenue increased to CNY 4.14 billion, reflecting strong growth potential. Earnings are forecasted to grow significantly at 93.56% annually, surpassing the Chinese market average of 23.8%. Despite this growth outlook, dividends may not be well-covered by earnings or free cash flow, suggesting potential sustainability concerns.

• Dive into the specifics of Guangdong Dowstone Technology here with our thorough growth forecast report.
• The valuation report we've compiled suggests that Guangdong Dowstone Technology's current price could be inflated.

Beijing SOJO Electric (SZSE:300444)

Simply Wall St Growth Rating: ★★★★★★

Overview: Beijing SOJO Electric Co., Ltd. focuses on the research, production, export, and sale of power distribution and automation equipment for power transmission and distribution networks, with a market cap of CN¥5.72 billion.

Operations: The company's revenue is derived from its involvement in the research, production, export, and sale of equipment related to power distribution and automation within power transmission and distribution networks.

Insider Ownership: 38%

Revenue Growth Forecast: 24.9% p.a.

Beijing SOJO Electric has demonstrated robust growth, with half-year net income rising to CNY 86.19 million from CNY 60.14 million the previous year, and revenue increasing to CNY 1.67 billion. The company's earnings are forecasted to grow significantly at 43.8% annually, surpassing the Chinese market average of 23.8%. Recent strategic transactions include a notable acquisition by Hangzhou Yingxin Enterprise Management for approximately CNY 270 million, reflecting strong insider confidence in future prospects.

• Unlock comprehensive insights into our analysis of Beijing SOJO Electric stock in this growth report.
• The analysis detailed in our Beijing SOJO Electric valuation report hints at an inflated share price compared to its estimated value.

Key Takeaways

• Dive into all 1485 of the Fast Growing Companies With High Insider Ownership we have identified here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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