Stock Analysis

Shenghe Resources Holding And Two More Growth Stocks With Significant Insider Ownership

SHSE:600392
Source: Shutterstock

As global markets continue to navigate through a landscape marked by cooling labor markets and fluctuating interest rates, investors are keenly watching how different sectors and companies adapt. In this context, growth companies with high insider ownership, like Shenghe Resources Holding, can be particularly intriguing due to the alignment of management’s interests with those of shareholders, potentially fostering resilience and long-term value creation amidst economic shifts.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Yggdrazil Group (SET:YGG)18%33.5%
Cettire (ASX:CTT)28.7%26.7%
Gaming Innovation Group (OB:GIG)26.7%36.9%
Arctech Solar Holding (SHSE:688408)26%25.8%
Clinuvel Pharmaceuticals (ASX:CUV)13.6%26.7%
Seojin SystemLtd (KOSDAQ:A178320)27.9%58.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.7%60.9%
Vow (OB:VOW)31.8%97.6%
UTI (KOSDAQ:A179900)34.1%122.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%

Click here to see the full list of 1437 stocks from our Fast Growing Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Shenghe Resources Holding (SHSE:600392)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenghe Resources Holding Co., Ltd specializes in the research, development, production, and distribution of rare earth and related products both domestically and globally, with a market capitalization of approximately CN¥14.50 billion.

Operations: The company specializes in the production and distribution of rare earth products, generating revenues primarily from these segments.

Insider Ownership: 13.7%

Shenghe Resources Holding Co., Ltd experienced a significant downturn in its recent quarterly earnings, reporting a net loss of CNY 215.57 million compared to a net profit last year. Despite this setback, the company's annual revenue grew to CNY 17.88 billion, up from CNY 16.76 billion, with an expected substantial annual earnings growth over the next three years outpacing the Chinese market average. However, concerns linger due to low return on equity forecasts and narrow profit margins from the previous year.

SHSE:600392 Earnings and Revenue Growth as at Jul 2024
SHSE:600392 Earnings and Revenue Growth as at Jul 2024

Raytron TechnologyLtd (SHSE:688002)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Raytron Technology Co., Ltd. focuses on the research, development, design, manufacturing, and sales of uncooled infrared imaging and MEMS sensor technology in China, with a market capitalization of CN¥12.19 billion.

Operations: The company generates revenue primarily through the development and sales of uncooled infrared imaging and MEMS sensor technologies.

Insider Ownership: 26.7%

Raytron TechnologyLtd. is poised for robust growth with expected annual earnings to increase by 27.9% and revenue forecasted to grow at 23.6% annually, both outstripping the Chinese market averages of 22.1% and 13.7%, respectively. Despite a low forecasted return on equity of 15.7%, the company actively supports shareholder value as evidenced by its recent CNY 200 million share repurchase program, aimed at employee incentives and equity plans, funded from its own resources.

SHSE:688002 Ownership Breakdown as at Jul 2024
SHSE:688002 Ownership Breakdown as at Jul 2024

Wuhan Guide Infrared (SZSE:002414)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Wuhan Guide Infrared Co., Ltd. specializes in the research, development, production, and sale of infrared thermal imaging technology across Asia, with a market capitalization of approximately CN¥25.50 billion.

Operations: The company generates revenue through the development and sale of infrared thermal imaging technology in Asia.

Insider Ownership: 27.2%

Wuhan Guide Infrared Co., Ltd. is experiencing substantial growth, with earnings and revenue forecasted to expand by 53% and 22.5% annually, surpassing the Chinese market's expectations. However, recent financial results show a significant drop in net income from CNY 501.95 million to CNY 67.7 million year-over-year, alongside a decrease in profit margins from 11.4% to just 0.5%. Despite these challenges, the company maintains an active shareholder engagement through dividend distributions and amendments to corporate governance structures.

SZSE:002414 Earnings and Revenue Growth as at Jul 2024
SZSE:002414 Earnings and Revenue Growth as at Jul 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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