Stock Analysis

3 Growth Companies With High Insider Ownership Growing Earnings At 55%

SZSE:300583
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As global markets navigate the impact of rising U.S. Treasury yields and a cautious economic outlook, growth stocks have demonstrated resilience, with the tech-heavy Nasdaq Composite Index showing slight gains despite broader market pressures. In this environment, companies with high insider ownership that are experiencing robust earnings growth can be particularly appealing to investors seeking long-term potential amidst fluctuating market conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Archean Chemical Industries (NSEI:ACI)22.9%34%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Laopu Gold (SEHK:6181)36.4%33%
Findi (ASX:FND)35.8%64.8%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Pharma Mar (BME:PHM)11.8%55.1%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%

Click here to see the full list of 1463 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Hanza (OM:HANZA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hanza AB (publ) offers manufacturing solutions and has a market cap of SEK 3.03 billion.

Operations: Revenue segments for the company include manufacturing solutions.

Insider Ownership: 37.8%

Earnings Growth Forecast: 32.1% p.a.

HANZA has seen substantial insider buying over the past three months, signaling confidence in its growth prospects. Despite a forecasted revenue growth of 9.7% annually, which is slower than the desired 20%, it surpasses the Swedish market's growth rate. Earnings are expected to grow significantly at 32.1% annually, outpacing the market average. Recent strategic agreements with Mitel and a German company aim to enhance supply chain efficiency and sustainability, potentially boosting future revenues despite current profit margin declines.

OM:HANZA Ownership Breakdown as at Oct 2024
OM:HANZA Ownership Breakdown as at Oct 2024

China Ruyi Holdings (SEHK:136)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: China Ruyi Holdings Limited is an investment holding company involved in content production and online streaming across the People's Republic of China, Hong Kong, Europe, and other international markets with a market cap of HK$24.38 billion.

Operations: The company's revenue is primarily derived from its content production business, generating CN¥1.63 billion, and its online streaming and gaming businesses, which contribute CN¥3.01 billion.

Insider Ownership: 15.1%

Earnings Growth Forecast: 18.4% p.a.

China Ruyi Holdings shows promising growth prospects with its revenue expected to increase by 22.7% annually, outpacing the Hong Kong market. Recent earnings results reflect a substantial sales increase to CNY 1.84 billion, though net loss remains at CNY 114.65 million. Despite past shareholder dilution and lower profit margins compared to last year, the company trades significantly below estimated fair value, suggesting potential upside if forecasted growth materializes and financial stability improves over time.

SEHK:136 Earnings and Revenue Growth as at Oct 2024
SEHK:136 Earnings and Revenue Growth as at Oct 2024

Shandong Sito Bio-technology (SZSE:300583)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shandong Sito Bio-technology Co., Ltd. focuses on researching and developing new steroid biomedicine intermediates, with a market cap of CN¥4.85 billion.

Operations: The company generates revenue primarily from its development of innovative steroid biomedicine intermediates.

Insider Ownership: 24.6%

Earnings Growth Forecast: 55.6% p.a.

Shandong Sito Bio-technology faces challenges with declining sales and net income, reporting CNY 765.03 million in sales and CNY 14.72 million in net income for the first nine months of 2024. Despite this, earnings are forecast to grow by 55.6% annually, and revenue growth is expected to outpace the Chinese market at 14.4% per year. However, its share price has been highly volatile recently, and return on equity is projected to remain low at 3.8%.

SZSE:300583 Ownership Breakdown as at Oct 2024
SZSE:300583 Ownership Breakdown as at Oct 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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