Stock Analysis

Discover Guangdong Huate Gas And 2 Other Growth Stocks With Insider Stakes

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As global markets navigate a complex landscape marked by interest rate adjustments and sector-specific fluctuations, investors are keenly observing the performance of various indices. With the S&P 500 and Nasdaq Composite showing notable gains, particularly in tech-related stocks, attention is turning towards growth companies that not only demonstrate potential but also have significant insider ownership—a factor often viewed as a vote of confidence in a company's prospects. In this context, Guangdong Huate Gas and two other growth stocks with substantial insider stakes present intriguing opportunities for those looking to align their investments with market trends.

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.

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

Guangdong Huate Gas (SHSE:688268)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Huate Gas Co., Ltd is involved in the production and supply of gas and gas equipment in China, with a market cap of CN¥6.80 billion.

Operations: The company's revenue segments include the production and supply of gas and gas equipment within China.

Insider Ownership: 22%

Guangdong Huate Gas shows promising growth potential, with earnings forecast to rise significantly at 29% annually, outpacing the broader Chinese market. Despite a slight dip in revenue and sales for the first half of 2024, net income increased to CNY 96.15 million from CNY 74.62 million last year. The company's recent share buyback reflects confidence but hasn't stabilized its volatile share price. However, its dividend yield remains inadequately covered by free cash flows.

SHSE:688268 Ownership Breakdown as at Oct 2024

Shenzhen Highpower Technology (SZSE:001283)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Highpower Technology Co., Ltd. focuses on the research, design, development, manufacture, and sale of lithium-ion and nickel-metal hydride batteries in China, with a market cap of CN¥3.62 billion.

Operations: The company's revenue is primarily derived from its polymer soft pack lithium-ion batteries at CN¥2.92 billion, cylindrical lithium-ion batteries at CN¥1.40 billion, and nickel-metal hydride batteries at CN¥587.97 million.

Insider Ownership: 30.1%

Shenzhen Highpower Technology demonstrates strong growth potential, with earnings expected to grow significantly at 82% annually, surpassing the broader Chinese market. Revenue is also forecasted to increase faster than the market at 19.2% per year. Recent earnings for the first half of 2024 showed sales rising to CNY 2.32 billion from CNY 1.72 billion, while net income climbed modestly to CNY 27.44 million. However, profit margins have decreased compared to last year and interest coverage remains a concern.

SZSE:001283 Ownership Breakdown as at Oct 2024

Taiwan Paiho (TWSE:9938)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Taiwan Paiho Limited operates in the manufacturing and sale of various textile products including touch fasteners, digital woven fabrics, and shoelaces, with a market capitalization of approximately NT$24.05 billion.

Operations: The company's revenue is primarily derived from the Main Sub-Materials and Accessories Segment, which accounts for NT$13.97 billion, followed by the Construction Sector at NT$36.55 million.

Insider Ownership: 11.1%

Taiwan Paiho exhibits promising growth prospects, with earnings expected to grow significantly at 31.9% annually, outpacing the Taiwanese market. Recent financial results highlight robust performance, with net sales for September reaching TWD 1.44 billion and nine-month sales totaling TWD 11.60 billion, both showing substantial year-over-year increases. Despite strong revenue growth forecasts of 14.7% annually, debt coverage by operating cash flow remains a concern that investors should monitor closely.

TWSE:9938 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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