Stock Analysis

3 Growth Companies With Insider Ownership Seeing Up To 109% Earnings Growth

As global markets respond to China's robust stimulus measures, U.S. stocks have reached record highs, buoyed by optimism in technology and materials sectors. Amid this backdrop of economic activity and fluctuating consumer confidence, identifying growth companies with high insider ownership can offer insights into potential earnings expansion, as insiders often align their interests with shareholders' long-term success.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Arctech Solar Holding (SHSE:688408)37.8%29.9%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Laopu Gold (SEHK:6181)36.4%32.7%
Seojin SystemLtd (KOSDAQ:A178320)30.5%52.1%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Credo Technology Group Holding (NasdaqGS:CRDO)14.0%95%
HANA Micron (KOSDAQ:A067310)18.3%100.3%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1492 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Do-Fluoride New Materials (SZSE:002407)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Do-Fluoride New Materials Co., Ltd. is involved in the development, production, and sale of inorganic fluorides, electronic chemicals, lithium-ion batteries, and related materials both in China and internationally, with a market cap of CN¥14.64 billion.

Operations: The company's revenue segments include inorganic fluorides, electronic chemicals, and lithium-ion batteries along with related materials, serving both domestic and international markets.

Insider Ownership: 13.9%

Earnings Growth Forecast: 49.9% p.a.

Do-Fluoride New Materials shows potential for growth with earnings forecasted to increase significantly, outpacing the broader Chinese market. However, recent financial results indicate a decline in revenue and net income compared to the previous year. The company's profit margins have also decreased from 7% to 2.8%. Despite these challenges, insider ownership remains high, which can align management's interests with shareholders. Additionally, no substantial insider trading activity has been reported over the past three months.

SZSE:002407 Ownership Breakdown as at Oct 2024

Guangdong Create Century Intelligent Equipment Group (SZSE:300083)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Create Century Intelligent Equipment Group Corporation Limited, with a market cap of CN¥12.32 billion, is involved in the research, development, production, and sale of high-end intelligent equipment in China.

Operations: Guangdong Create Century Intelligent Equipment Group's revenue is primarily derived from its operations in the high-end intelligent equipment sector within China.

Insider Ownership: 17.9%

Earnings Growth Forecast: 41.9% p.a.

Guangdong Create Century Intelligent Equipment Group is poised for growth, with earnings expected to rise significantly at 41.9% annually, surpassing the Chinese market's average. Revenue growth is also strong at 23.1% per year. However, recent financials show a slight decline in net income and profit margins compared to last year, with no substantial insider trading activity reported recently. Recent amendments to company bylaws may impact future governance and strategic direction.

SZSE:300083 Earnings and Revenue Growth as at Oct 2024

Porton Pharma Solutions (SZSE:300363)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Porton Pharma Solutions Ltd. manufactures and sells small molecule active pharmaceutical ingredients, dosage forms, and biologics to pharmaceutical companies in China, the United States, and Europe with a market cap of CN¥9.05 billion.

Operations: Porton Pharma Solutions generates revenue through the production and distribution of small molecule active pharmaceutical ingredients, dosage forms, and biologics to pharmaceutical companies across China, the United States, and Europe.

Insider Ownership: 26.7%

Earnings Growth Forecast: 109.8% p.a.

Porton Pharma Solutions is positioned for growth, with earnings forecasted to grow significantly at 109.8% annually, outpacing the Chinese market's average. Despite recent financial challenges, including a net loss of CNY 170.04 million for H1 2024, strategic partnerships and collaborations in gene therapy could bolster future prospects. Revenue growth is expected at 19.3% per year, though insider trading activity remains minimal recently. The company trades at good value compared to peers and industry benchmarks.

SZSE:300363 Earnings and Revenue Growth as at Oct 2024

Taking Advantage

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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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