Stock Analysis

Guangdong Huate Gas Leads Three Growth Companies With High Insider Stakes

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As global markets exhibit a notably broad advance, with indices like the Russell 2000 and S&P 500 reaching new heights amidst fluctuating consumer prices and inflation rates, investors are keenly observing market dynamics. In such an environment, growth companies with high insider ownership can be particularly compelling, suggesting a strong alignment between company management’s interests and those of its shareholders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)24%22.3%
Kirloskar Pneumatic (BSE:505283)30.6%29.8%
Cettire (ASX:CTT)28.7%26.7%
Gaming Innovation Group (OB:GIG)26.7%37.4%
Arctech Solar Holding (SHSE:688408)38.7%25.4%
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%
Vow (OB:VOW)31.8%97.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%

Click here to see the full list of 1438 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.

Guangdong Huate Gas (SHSE:688268)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Huate Gas Co., Ltd. is a company based in China, specializing in the production and supply of gas and gas equipment, with a market capitalization of approximately CN¥6.14 billion.

Operations: The company generates its revenue primarily from the production and supply of gas and related equipment in China.

Insider Ownership: 22%

Earnings Growth Forecast: 29.2% p.a.

Guangdong Huate Gas is poised for substantial growth with earnings expected to increase by 29.23% annually, outpacing the Chinese market's 22.2%. Revenue forecasts also look promising, projected to grow at 22.7% per year, again faster than the market average of 13.7%. However, its return on equity is anticipated to be relatively low at 14.8%, and the modest dividend yield of 0.98% is not well supported by free cash flows, indicating potential reinvestment or financial flexibility concerns.

SHSE:688268 Earnings and Revenue Growth as at Jul 2024

KEDE Numerical Control (SHSE:688305)

Simply Wall St Growth Rating: ★★★★★☆

Overview: KEDE Numerical Control Co., Ltd. specializes in the manufacturing and marketing of CNC systems and functional components within China, with a market capitalization of approximately CN¥6.61 billion.

Operations: The company generates revenue primarily from the general equipment manufacturing sector, totaling CN¥468.13 million.

Insider Ownership: 18.1%

Earnings Growth Forecast: 43.8% p.a.

KEDE Numerical Control has shown a solid revenue increase, up to CNY 101.12 million this quarter from CNY 85.25 million last year, though net income dipped to CNY 15.06 million from CNY 26.88 million. Despite recent shareholder dilution, the company's earnings are expected to grow by a very large margin annually over the next three years, outperforming the Chinese market's growth rate significantly in both revenue and earnings projections. However, its forecasted return on equity remains low at around 14.5%.

SHSE:688305 Ownership Breakdown as at Jul 2024

Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)

Simply Wall St Growth Rating: ★★★★★★

Overview: Suzhou Shijing Environmental Technology Ltd, operating under the ticker SZSE:301030, is a company focused on environmental protection technologies with a market capitalization of approximately CN¥4.81 billion.

Operations: The company generates revenue primarily from its pollution and treatment control products segment, totaling approximately CN¥3.73 billion.

Insider Ownership: 22%

Earnings Growth Forecast: 54.9% p.a.

Suzhou Shijing Environmental TechnologyLtd has demonstrated robust financial growth with a significant increase in annual revenue from CNY 1.43 billion to CYN 3.44 billion and net income more than doubling to CNY 216.65 million. Despite high volatility in share price, the company's earnings are forecasted to grow by an impressive rate annually, outpacing the Chinese market average significantly. Recent activities include a share buyback and consistent dividend payouts, reflecting confidence from management despite its dividends not being well covered by free cash flows.

SZSE:301030 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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