Stock Analysis

Three Insider-Favored Growth Stocks To Watch

SHSE:688105
Source: Shutterstock

As global markets experience a rebound with cooling inflation and strong bank earnings propelling U.S. stocks higher, investors are increasingly scrutinizing growth companies that have significant insider ownership. In this environment, where value stocks have recently outperformed growth shares, high insider ownership can be an indicator of confidence in a company's long-term potential, making these stocks particularly intriguing for those seeking to navigate the current economic landscape.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Clinuvel Pharmaceuticals (ASX:CUV)10.4%26.2%
Propel Holdings (TSX:PRL)36.8%38.9%
Medley (TSE:4480)34%27.2%
On Holding (NYSE:ONON)19.1%29.7%
Fine M-TecLTD (KOSDAQ:A441270)17.2%131.1%
Elliptic Laboratories (OB:ELABS)26.8%121.1%
Fulin Precision (SZSE:300432)13.6%66.7%
HANA Micron (KOSDAQ:A067310)18.3%110.9%
Findi (ASX:FND)35.8%112.9%

Click here to see the full list of 1477 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Nanjing Vazyme Biotech (SHSE:688105)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Nanjing Vazyme Biotech Co., Ltd provides technology solutions in life science, biomedicine, and in vitro diagnostics with a market cap of CN¥8.40 billion.

Operations: Nanjing Vazyme Biotech Co., Ltd generates revenue through its technology solutions in life science, biomedicine, and in vitro diagnostics.

Insider Ownership: 12.8%

Nanjing Vazyme Biotech demonstrates significant growth potential, with earnings forecasted to grow at 90% annually, outpacing the broader Chinese market. Recent financial results show a return to profitability with CNY 18.16 million net income for the first nine months of 2024, compared to a loss previously. Despite low anticipated return on equity and large one-off items affecting quality earnings, insider ownership remains strong without substantial recent selling activity. The company completed a share buyback worth CNY 104.38 million by December 2024.

SHSE:688105 Earnings and Revenue Growth as at Jan 2025
SHSE:688105 Earnings and Revenue Growth as at Jan 2025

Lianhe Chemical TechnologyLtd (SZSE:002250)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lianhe Chemical Technology Co., Ltd. is involved in the production and sale of chemical products in China, with a market capitalization of CN¥5.25 billion.

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

Insider Ownership: 29.9%

Lianhe Chemical Technology is trading significantly below its estimated fair value, suggesting potential undervaluation. Forecasted revenue growth of 17.9% annually surpasses the Chinese market average, yet remains under 20%. The company has returned to profitability with a net income of CNY 32.5 million for the first nine months of 2024, reversing last year's losses, though it carries substantial debt and low future return on equity projections. No significant insider trading activity was observed recently.

SZSE:002250 Earnings and Revenue Growth as at Jan 2025
SZSE:002250 Earnings and Revenue Growth as at Jan 2025

Lucky Harvest (SZSE:002965)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lucky Harvest Co., Ltd. focuses on the research, development, production, and sale of precision stamping dies and structural metal parts in China with a market cap of CN¥7.49 billion.

Operations: Revenue Segments (in millions of CN¥): Precision stamping dies: 1,200; Structural metal parts: 3,500.

Insider Ownership: 33.1%

Lucky Harvest demonstrates strong growth potential with forecasted revenue and earnings growth outpacing the Chinese market. Despite a slight decline in net income to CNY 269.17 million for the first nine months of 2024, sales rose significantly to CNY 4.88 billion from the previous year. The company trades at a favorable price-to-earnings ratio of 18.8x compared to the market average, indicating good value relative to peers, though its dividend coverage is weak and return on equity forecasts remain modest.

SZSE:002965 Ownership Breakdown as at Jan 2025
SZSE:002965 Ownership Breakdown as at Jan 2025

Where To Now?

Curious About Other Options?

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.

Valuation is complex, but we're here to simplify it.

Discover if Nanjing Vazyme Biotech might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com