Stock Analysis
3 Growth Companies With Insider Ownership Seeing Up To 109% Earnings Growth
Reviewed by Simply Wall St
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
Name | Insider Ownership | Earnings 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% |
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.
- Navigate through the intricacies of Do-Fluoride New Materials with our comprehensive analyst estimates report here.
- Our comprehensive valuation report raises the possibility that Do-Fluoride New Materials is priced higher than what may be justified by its financials.
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.
- Get an in-depth perspective on Guangdong Create Century Intelligent Equipment Group's performance by reading our analyst estimates report here.
- Our valuation report here indicates Guangdong Create Century Intelligent Equipment Group may be overvalued.
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.
- Click here to discover the nuances of Porton Pharma Solutions with our detailed analytical future growth report.
- Our comprehensive valuation report raises the possibility that Porton Pharma Solutions is priced lower than what may be justified by its financials.
Taking Advantage
- Navigate through the entire inventory of 1492 Fast Growing Companies With High Insider Ownership here.
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Want To Explore Some Alternatives?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Find companies with promising cash flow potential yet trading below their fair value.
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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About SZSE:300083
Guangdong Create Century Intelligent Equipment Group
Engages in the research, development, production, and sale of high-end intelligent equipment business in China.