Stock Analysis

3 Growth Companies With High Insider Ownership Growing Earnings Up To 64%

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As global markets navigate a period of mixed performance, with major indices like the S&P 500 and Nasdaq Composite wrapping up another strong year despite recent fluctuations, investors are keenly observing economic indicators such as the Chicago PMI and GDP forecasts. Amidst this backdrop, identifying growth companies with high insider ownership can be particularly appealing, as these firms often demonstrate robust earnings potential while aligning management's interests closely with those of shareholders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Duc Giang Chemicals Group (HOSE:DGC)31.4%23.8%
People & Technology (KOSDAQ:A137400)16.4%37.3%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
Laopu Gold (SEHK:6181)36.4%34.6%
Medley (TSE:4480)34%27.2%
Plenti Group (ASX:PLT)12.8%120.1%
Brightstar Resources (ASX:BTR)16.2%84.5%
Fine M-TecLTD (KOSDAQ:A441270)17.2%131.1%
Fulin Precision (SZSE:300432)13.6%66.7%
HANA Micron (KOSDAQ:A067310)18.3%110.9%

Click here to see the full list of 1484 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Jiangsu Sinopep-Allsino Biopharmaceutical (SHSE:688076)

Simply Wall St Growth Rating: ★★★★★★

Overview: Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. is a biomedical company focused on the R&D, production, sale, and technical service of peptides and small molecule drugs in China with a market cap of CN¥11.10 billion.

Operations: The company's revenue is primarily derived from its Medicine Manufacturing segment, which generated CN¥1.58 billion.

Insider Ownership: 15.4%

Earnings Growth Forecast: 31.4% p.a.

Jiangsu Sinopep-Allsino Biopharmaceutical shows strong growth potential, with revenue expected to grow 31.5% annually, outpacing the Chinese market's 13.5%. The company's earnings are also forecasted to increase significantly over the next three years. Recent results highlight robust performance, with sales reaching CNY 1.25 billion and net income climbing to CNY 350.25 million for the first nine months of 2024, reflecting a substantial year-over-year improvement without recent insider trading activity noted.

SHSE:688076 Ownership Breakdown as at Jan 2025

Ganfeng Lithium Group (SZSE:002460)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ganfeng Lithium Group Co., Ltd. is a company that manufactures and sells lithium products across Mainland China, South Korea, Europe, the rest of Asia, North America, and internationally with a market cap of CN¥62.44 billion.

Operations: The company's revenue is generated from the manufacture and sale of lithium products across various regions, including Mainland China, South Korea, Europe, the rest of Asia, North America, and other international markets.

Insider Ownership: 27.8%

Earnings Growth Forecast: 64.9% p.a.

Ganfeng Lithium Group faces challenges with a reported net loss of CNY 640.39 million for the first nine months of 2024, contrasting sharply with last year's net income. Despite this, its revenue is forecasted to grow at 14.1% annually, outpacing the broader Chinese market's growth rate. The company is expected to become profitable in three years, although its return on equity remains low and debt coverage by operating cash flow is inadequate. No recent insider trading activity was noted.

SZSE:002460 Earnings and Revenue Growth as at Jan 2025

Money Forward (TSE:3994)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Money Forward, Inc. offers financial solutions for individuals, financial institutions, and corporations primarily in Japan with a market cap of approximately ¥267.89 billion.

Operations: The company generates revenue from its Platform Services Business, amounting to ¥38.47 billion.

Insider Ownership: 21.3%

Earnings Growth Forecast: 57.7% p.a.

Money Forward is poised for significant growth, with revenue expected to increase by 19.7% annually, surpassing the Japanese market's average. Despite a volatile share price and projected operating losses up to ¥4.73 billion in FY2024, the company is trading at 44.1% below fair value estimates, indicating potential undervaluation. Recent board discussions on subsidiary consolidation suggest strategic realignment efforts, while insider ownership remains steady without notable recent trading activity.

TSE:3994 Earnings and Revenue Growth as at Jan 2025

Where To Now?

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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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