Stock Analysis

Highlighting Shanghai Baolong Automotive And 2 Other Top Growth Stocks With Insider Ownership

SHSE:688320
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In a week marked by cautious sentiment following the Federal Reserve's rate cut and ongoing concerns about political uncertainty, global markets have experienced notable fluctuations, with U.S. stocks declining and European indices facing their biggest losses in months. Amid this backdrop of economic volatility, investors often look for growth companies with high insider ownership as these firms can offer potential resilience due to aligned interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)29.7%24.8%
Propel Holdings (TSX:PRL)23.9%37.6%
Laopu Gold (SEHK:6181)36.4%34.2%
On Holding (NYSE:ONON)19.1%29.4%
Pharma Mar (BME:PHM)11.8%56.2%
CD Projekt (WSE:CDR)29.7%27%
Plenti Group (ASX:PLT)12.8%120.1%
EHang Holdings (NasdaqGM:EH)32.8%81.5%
Credo Technology Group Holding (NasdaqGS:CRDO)13.4%66.3%
Elliptic Laboratories (OB:ELABS)26.8%111.4%

Click here to see the full list of 1514 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Shanghai Baolong Automotive (SHSE:603197)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai Baolong Automotive Corporation manufactures and sells automotive parts and components, with a market capitalization of CN¥8.02 billion.

Operations: Shanghai Baolong Automotive Corporation's revenue is derived from the manufacturing and sale of automotive parts and components.

Insider Ownership: 32.5%

Revenue Growth Forecast: 23.1% p.a.

Shanghai Baolong Automotive's revenue is forecast to grow at 23.1% annually, outpacing the Chinese market's 13.7%. Earnings are expected to increase by 36.7% per year, surpassing market averages. Despite trading significantly below estimated fair value and having no recent substantial insider trading activity, profit margins have declined from last year. The company's debt coverage by operating cash flow is weak, and earnings quality is impacted by large one-off items.

SHSE:603197 Ownership Breakdown as at Dec 2024
SHSE:603197 Ownership Breakdown as at Dec 2024

Zhejiang Hechuan Technology (SHSE:688320)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zhejiang Hechuan Technology Co., Ltd. specializes in the research and development, manufacturing, sale, and application integration of industrial automation products and has a market cap of CN¥7.38 billion.

Operations: The company's revenue segments include the research and development, manufacturing, sale, and application integration of industrial automation products.

Insider Ownership: 30.8%

Revenue Growth Forecast: 19.8% p.a.

Zhejiang Hechuan Technology's revenue is forecast to grow at 19.8% annually, exceeding the Chinese market average of 13.7%. However, recent earnings reports show a decline in sales to CNY 643.6 million and a net loss of CNY 80.63 million for the first nine months of 2024, compared to profits last year. Despite high volatility in share price and being dropped from the S&P Global BMI Index, insider trading activity remains stable with no substantial buying or selling reported recently.

SHSE:688320 Earnings and Revenue Growth as at Dec 2024
SHSE:688320 Earnings and Revenue Growth as at Dec 2024

Shenzhen King Explorer Science and Technology (SZSE:002917)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen King Explorer Science and Technology Corporation engages in the research, design, development, manufacturing, and sale of intelligent equipment systems for civil explosive production and blasting service companies both in China and internationally, with a market cap of CN¥3.36 billion.

Operations: Shenzhen King Explorer Science and Technology Corporation generates revenue through its intelligent equipment systems designed for civil explosive production and blasting service companies, serving both domestic and international markets.

Insider Ownership: 33.9%

Revenue Growth Forecast: 25.1% p.a.

Shenzhen King Explorer Science and Technology demonstrates strong growth potential with earnings forecasted to increase significantly at 38.6% annually, outpacing the Chinese market's 25.5%. Revenue is also expected to grow rapidly at 25.1% per year, surpassing market averages. The company reported improved performance for the first nine months of 2024, with sales reaching CNY 1.18 billion and net income rising to CNY 107.67 million from CNY 80.81 million last year, despite a low forecasted return on equity of 14.9%.

SZSE:002917 Ownership Breakdown as at Dec 2024
SZSE:002917 Ownership Breakdown as at Dec 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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