Stock Analysis

Examining 3 Growth Companies With High Insider Ownership And 38% Revenue Growth

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As global markets navigate through a mixed landscape with ongoing trade tensions and shifting investor focus towards value and small-cap stocks, it's crucial to consider the unique attributes of growth companies with high insider ownership. These firms not only demonstrate confidence from those closest to the core operations but also align well in an environment where discerning investment strategies are paramount for navigating market volatilities and capitalizing on economic recoveries.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Medley (TSE:4480)34%28.7%
Gaming Innovation Group (OB:GIG)26.7%37.4%
Fine M-TecLTD (KOSDAQ:A441270)17.2%36.4%
Clinuvel Pharmaceuticals (ASX:CUV)13.6%26.8%
KebNi (OM:KEBNI B)37.8%90.4%
Credo Technology Group Holding (NasdaqGS:CRDO)14.5%60.9%
Calliditas Therapeutics (OM:CALTX)11.6%52.9%
Adocia (ENXTPA:ADOC)11.9%63%
Vow (OB:VOW)31.7%97.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%

Click here to see the full list of 1450 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Zhejiang Huace Film & TV (SZSE:300133)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Huace Film & TV Co., Ltd. is a company based in China that specializes in the production and distribution of film and television dramas, both domestically and internationally, with a market capitalization of CN¥11.54 billion.

Operations: The company generates revenue primarily through the production and distribution of film and television dramas.

Insider Ownership: 23.2%

Revenue Growth Forecast: 24.5% p.a.

Zhejiang Huace Film & TV is poised for robust growth with earnings and revenue forecasted to outpace the Chinese market significantly, growing at 25.7% and 24.5% per year respectively. Despite this, the company's share price has been highly volatile recently, and its Return on Equity is expected to remain low at 7.3%. Additionally, recent dividend increases indicate a potential commitment to returning value to shareholders amidst this growth phase.

SZSE:300133 Earnings and Revenue Growth as at Jul 2024

Jiangsu TongLin ElectricLtd (SZSE:301168)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangsu TongLin Electric Co., Ltd. specializes in the development and manufacturing of photovoltaic connection systems, power stations, electrical equipment, and industrial automation solutions in China, with a market capitalization of approximately CN¥3.24 billion.

Operations: The company generates revenue primarily from the development and manufacturing of photovoltaic connection systems and power stations, along with electrical equipment and industrial automation solutions.

Insider Ownership: 29.6%

Revenue Growth Forecast: 23.8% p.a.

Jiangsu TongLin Electric Ltd., with its recent executive board reshuffling and share buyback completion, shows a proactive approach in governance and shareholder value. The company's earnings are expected to grow by 30.22% annually, outpacing the Chinese market's 22.1%. Despite a low forecasted Return on Equity of 12.6%, its Price-To-Earnings ratio at 21.7x remains attractive compared to the industry average of 26.9x, indicating potential undervaluation amidst significant revenue growth projections of 23.8% per year.

SZSE:301168 Earnings and Revenue Growth as at Jul 2024

WinWay Technology (TWSE:6515)

Simply Wall St Growth Rating: ★★★★★☆

Overview: WinWay Technology Co., Ltd. is engaged in the design, processing, and sale of optoelectronic product test fixtures, integrated circuit test interfaces, and related components across Taiwan, the Americas, China, Asia, Europe, and Canada with a market capitalization of NT$36.16 billion.

Operations: The company generates revenue primarily through the manufacture and sales of photoelectric product testing tools, totaling NT$3.75 billion.

Insider Ownership: 22.9%

Revenue Growth Forecast: 39% p.a.

WinWay Technology is poised for substantial growth with expected revenue and earnings increases of 39% and 63.6% per year, respectively, outpacing the Taiwan market significantly. Despite this, profit margins have dipped from 21.1% to 13.9%, reflecting some operational challenges amid its rapid expansion. Recent corporate activities include a dividend decrease and amendments to company bylaws, indicating active management engagement but also potential shifts in financial strategy amidst high share price volatility.

TWSE:6515 Ownership Breakdown as at Jul 2024

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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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