As global markets navigate a complex landscape marked by interest rate adjustments and sector-specific shifts, the U.S. indices like the S&P 500 and Nasdaq Composite have shown resilience, buoyed by strong performances in utilities, real estate, and AI-related stocks. Amid these developments, investors often look for growth companies with high insider ownership as potential opportunities, given that significant insider stakes can signal confidence in a company's prospects.
Top 10 Growth Companies With High Insider Ownership
| Name | Insider Ownership | Earnings Growth |
| Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3) | 11.9% | 21.1% |
| Atlas Energy Solutions (NYSE:AESI) | 29.1% | 41.9% |
| Arctech Solar Holding (SHSE:688408) | 37.8% | 29.8% |
| Laopu Gold (SEHK:6181) | 36.4% | 33.2% |
| Seojin SystemLtd (KOSDAQ:A178320) | 30.7% | 49.1% |
| HANA Micron (KOSDAQ:A067310) | 18.3% | 105.8% |
| Credo Technology Group Holding (NasdaqGS:CRDO) | 13.9% | 95% |
| Adveritas (ASX:AV1) | 21.2% | 144.2% |
| Plenti Group (ASX:PLT) | 12.8% | 106.4% |
| EHang Holdings (NasdaqGM:EH) | 32.8% | 81.4% |
Let's take a closer look at a couple of our picks from the screened companies.
Appotronics (SHSE:688007)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Appotronics Corporation Limited focuses on the research, development, production, sale, and leasing of laser display devices and machines in China with a market cap of CN¥7.35 billion.
Operations: Appotronics generates revenue through the research, development, production, sale, and leasing of laser display devices and machines in China.
Insider Ownership: 22.8%
Revenue Growth Forecast: 19.7% p.a.
Appotronics has seen a decline in net income, reporting CNY 42.95 million for the nine months ending September 2024 compared to CNY 128.56 million the previous year, with profit margins dropping from 6.8% to 0.8%. Despite this, its earnings are forecast to grow significantly at an annual rate of over 72%, outpacing the Chinese market's average growth of 23.8%. The company recently completed a share buyback worth CNY 29.88 million, indicating confidence in its future prospects despite current challenges.
- Take a closer look at Appotronics' potential here in our earnings growth report.
- Upon reviewing our latest valuation report, Appotronics' share price might be too pessimistic.
Dongguan Aohai Technology (SZSE:002993)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Dongguan Aohai Technology Co., Ltd. researches, develops, produces, and sells consumer electronics products in China and internationally with a market cap of CN¥7.76 billion.
Operations: The company's revenue is primarily derived from its Computer, Communications, and Other Electronic Equipment Manufacturing segment, which generated CN¥6.12 billion.
Insider Ownership: 18.6%
Revenue Growth Forecast: 20.4% p.a.
Dongguan Aohai Technology's earnings and revenue are forecast to grow significantly, with earnings expected to increase by 26.1% annually, surpassing the Chinese market's growth rate. The company reported a substantial rise in half-year sales and revenue, reaching CNY 2.96 billion from CNY 2.02 billion year-over-year. Despite trading at a good value with a P/E ratio of 16.9x below the market average, its dividend is not well covered by free cash flows, indicating potential sustainability issues.
- Dive into the specifics of Dongguan Aohai Technology here with our thorough growth forecast report.
- Our comprehensive valuation report raises the possibility that Dongguan Aohai Technology is priced lower than what may be justified by its financials.
PharmaResources (Shanghai) (SZSE:301230)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: PharmaResources (Shanghai) Co., Ltd. operates as a CRO, CDMO, and CMO service provider for drug discovery in China with a market cap of CN¥3.60 billion.
Operations: PharmaResources generates revenue through its roles as a CRO, CDMO, and CMO service provider in the drug discovery sector within China.
Insider Ownership: 13.8%
Revenue Growth Forecast: 19.1% p.a.
PharmaResources (Shanghai) is experiencing substantial growth, with earnings forecasted to increase by over 40% annually, outpacing the Chinese market. Recent half-year results showed revenue rising to CNY 265.76 million from CNY 237.66 million, though net income decreased significantly. Despite a volatile share price and low profit margins of 4%, insider ownership remains strong without significant recent trading activity. The company completed a share buyback worth CNY 53.08 million but faces challenges with dividend sustainability and low return on equity forecasts.
- Click here to discover the nuances of PharmaResources (Shanghai) with our detailed analytical future growth report.
- In light of our recent valuation report, it seems possible that PharmaResources (Shanghai) is trading beyond its estimated value.
Key Takeaways
- Unlock more gems! Our Fast Growing Companies With High Insider Ownership screener has unearthed 1483 more companies for you to explore.Click here to unveil our expertly curated list of 1486 Fast Growing Companies With High Insider Ownership.
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Searching for a Fresh Perspective?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Appotronics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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