Stock Analysis

Three High Growth Companies With Significant Insider Ownership

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As global markets reach record highs buoyed by China's robust stimulus measures and optimism surrounding artificial intelligence, investors are seeking opportunities in high-growth companies with substantial insider ownership. Such stocks often signal strong confidence from those closest to the business, making them attractive in the current bullish environment.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Arctech Solar Holding (SHSE:688408)38.6%29.9%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
Seojin SystemLtd (KOSDAQ:A178320)30.5%52.1%
Laopu Gold (SEHK:6181)36.4%32.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.0%95%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
HANA Micron (KOSDAQ:A067310)18.3%100.3%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1519 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Jiayou International LogisticsLtd (SHSE:603871)

Simply Wall St Growth Rating: ★★★★★★

Overview: Jiayou International Logistics Co., Ltd, with a market cap of CN¥22.10 billion, provides domestic and international multimodal transportation, logistics infrastructure investment and operation, and supply chain trade through its subsidiaries.

Operations: The company's revenue segments include domestic and international multimodal transportation, logistics infrastructure investment and operation, and supply chain trade.

Insider Ownership: 20.6%

Revenue Growth Forecast: 20.8% p.a.

Jiayou International Logistics Ltd. showcases strong growth potential, with earnings forecasted to grow 24.6% annually, outpacing the CN market's 23.2%. The company reported a significant revenue increase for H1 2024, reaching CNY 4.64 billion from CNY 2.81 billion in H1 2023, and net income of CNY 759.31 million versus CNY 503.73 million prior year. Trading at a good value compared to peers and industry, it benefits from substantial insider ownership but lacks recent insider trading activity.

SHSE:603871 Ownership Breakdown as at Oct 2024

QuantumCTek (SHSE:688027)

Simply Wall St Growth Rating: ★★★★★☆

Overview: QuantumCTek Co., Ltd. manufactures quantum information technology-enabled security products and services for the information and communication technology sector in China, with a market cap of CN¥15.75 billion.

Operations: QuantumCTek's revenue segments include the production of quantum information technology-enabled security products and services for the ICT sector in China.

Insider Ownership: 15.7%

Revenue Growth Forecast: 32.3% p.a.

QuantumCTek reported H1 2024 revenue of CNY 69.54 million, up from CNY 56.79 million in H1 2023, and reduced its net loss to CNY 35.34 million from CNY 41.95 million a year ago. Revenue is forecasted to grow at an impressive rate of 32.3% annually, significantly above the CN market average of 13.2%. Despite low return on equity projections (2.7%), the company is expected to become profitable within three years, driven by substantial insider ownership and strong growth prospects.

SHSE:688027 Earnings and Revenue Growth as at Oct 2024

Guangzhou Wondfo BiotechLtd (SZSE:300482)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangzhou Wondfo Biotech Co., Ltd, with a market cap of CN¥12.63 billion, specializes in the R&D, production, and sale of point-of-care testing products and rapid diagnosis and chronic disease management solutions in China.

Operations: Revenue from diagnostic kits and equipment amounts to CN¥2.85 billion.

Insider Ownership: 31.1%

Revenue Growth Forecast: 20.4% p.a.

Guangzhou Wondfo Biotech reported H1 2024 revenue of CNY 1.58 billion, up from CNY 1.49 billion in H1 2023, with net income rising to CNY 355.8 million from CNY 334.5 million a year ago. Forecasts indicate annual revenue growth of over 20%, outpacing the CN market's average of 13.2%. Despite some past shareholder dilution and an unstable dividend track record, the company trades at a favorable P/E ratio (24.8x) compared to the market (33.5x).

SZSE:300482 Ownership Breakdown as at Oct 2024

Key Takeaways

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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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