Stock Analysis

3 Growth Companies Insiders Are Betting On

SZSE:002023
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As global markets navigate a landscape of fluctuating oil prices and economic shifts, the U.S. indices have shown resilience, with the S&P 500 and Nasdaq Composite reflecting strong performances driven by sectors like utilities and real estate. Amidst this backdrop, insider ownership in growth companies can serve as a compelling indicator of confidence in their potential; such stocks may offer unique opportunities for investors seeking alignment between company leadership and shareholder interests.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Atlas Energy Solutions (NYSE:AESI)29.1%41.9%
Kirloskar Pneumatic (BSE:505283)30.3%30.1%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
Laopu Gold (SEHK:6181)36.4%33.2%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%106.4%
EHang Holdings (NasdaqGM:EH)32.8%81.4%

Click here to see the full list of 1480 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Jinhong GasLtd (SHSE:688106)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Jinhong Gas Co., Ltd. is a Chinese company that produces and sells bulk, special, and natural gas products, with a market cap of CN¥9.38 billion.

Operations: Jinhong Gas Co., Ltd.'s revenue is derived from its production and sale of bulk, special, and natural gas products within China.

Insider Ownership: 35.4%

Jinhong Gas Ltd. demonstrates strong growth potential with earnings forecasted to grow 23.52% annually, outpacing the Chinese market's revenue growth projection of 13.5%. Despite trading significantly below its estimated fair value, return on equity is predicted to remain modest at 13.6% over three years. Recent buyback plans totaling CNY 80 million reflect strategic insider confidence, though dividends are not well-covered by free cash flows, indicating a focus on reinvestment and expansion over immediate shareholder returns.

SHSE:688106 Earnings and Revenue Growth as at Oct 2024
SHSE:688106 Earnings and Revenue Growth as at Oct 2024

Shenzhen United Winners Laser (SHSE:688518)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen United Winners Laser Co., Ltd. manufactures and sells laser welding equipment in China and internationally, with a market cap of CN¥5.46 billion.

Operations: Revenue Segments (in millions of CN¥):

Insider Ownership: 14.3%

Shenzhen United Winners Laser is expected to see earnings grow significantly at 44.1% annually, surpassing the Chinese market's forecasted growth of 23.8%. However, recent financial results show a decline in revenue and net income compared to the previous year, with sales at CNY 1.42 billion and net income at CNY 51.18 million. Despite this, high insider ownership may indicate confidence in long-term growth prospects amid challenges like low profit margins and return on equity forecasts.

SHSE:688518 Ownership Breakdown as at Oct 2024
SHSE:688518 Ownership Breakdown as at Oct 2024

Sichuan Haite High-techLtd (SZSE:002023)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sichuan Haite High-tech Co., Ltd specializes in providing aircraft airborne equipment maintenance services in China, with a market capitalization of CN¥8.18 billion.

Operations: The company's revenue is primarily derived from Aeronautical Engineering Technology and Services, which generated CN¥853.97 million, and High-End Core Equipment Research and Development and Support, contributing CN¥255.73 million.

Insider Ownership: 15.3%

Sichuan Haite High-tech Ltd. is poised for growth with earnings forecasted to increase by 29.03% annually, outpacing the CN market's 23.8% projection. Recent financials show robust performance, with half-year revenue rising to CNY 618.02 million from CNY 502.44 million and net income reaching CNY 47.08 million from CNY 28.58 million year-on-year, reflecting strong operational momentum despite a low future return on equity forecast of 2.6%.

SZSE:002023 Ownership Breakdown as at Oct 2024
SZSE:002023 Ownership Breakdown as at Oct 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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