As global markets grapple with inflation concerns and political uncertainties, growth stocks have come under pressure, particularly in the U.S., where small-cap stocks have recently underperformed their larger counterparts. In this volatile environment, companies with high insider ownership can offer a unique advantage, as significant insider stakes often signal confidence in the company's long-term prospects and alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership
Name | Insider Ownership | Earnings Growth |
Seojin SystemLtd (KOSDAQ:A178320) | 30.9% | 39.9% |
Propel Holdings (TSX:PRL) | 36.8% | 38.9% |
Laopu Gold (SEHK:6181) | 36.4% | 35.8% |
Pharma Mar (BME:PHM) | 11.9% | 56.2% |
Plenti Group (ASX:PLT) | 12.8% | 120.1% |
Fine M-TecLTD (KOSDAQ:A441270) | 17.2% | 131.1% |
Credo Technology Group Holding (NasdaqGS:CRDO) | 13.2% | 66.2% |
Elliptic Laboratories (OB:ELABS) | 26.8% | 111.4% |
Fulin Precision (SZSE:300432) | 13.6% | 66.7% |
Findi (ASX:FND) | 34.8% | 112.9% |
Let's dive into some prime choices out of the screener.
Hoshine Silicon Industry (SHSE:603260)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Hoshine Silicon Industry Co., Ltd. is involved in the production and sale of silicon-based materials both in China and internationally, with a market cap of CN¥61.72 billion.
Operations: The company generates revenue through its production and sale of silicon-based materials across domestic and international markets.
Insider Ownership: 32.6%
Revenue Growth Forecast: 16.9% p.a.
Hoshine Silicon Industry is experiencing significant earnings growth, forecasted at 32.8% annually, outpacing the CN market. Despite a low return on equity projection of 9.9%, its price-to-earnings ratio of 32.5x remains competitive within the market. Recent share buybacks totaling CNY 500.09 million indicate confidence in future prospects, although profit margins have declined from last year’s figures. The company was recently added to the SSE 180 Index, enhancing its visibility among investors.
- Navigate through the intricacies of Hoshine Silicon Industry with our comprehensive analyst estimates report here.
- Our valuation report here indicates Hoshine Silicon Industry may be overvalued.
Hangzhou Lion ElectronicsLtd (SHSE:605358)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Hangzhou Lion Electronics Co., Ltd operates in China focusing on the research, development, production, and sale of semiconductor silicon wafers, power devices, and compound semiconductor radio frequency chips with a market capitalization of CN¥15.74 billion.
Operations: The company's revenue is derived from its activities in semiconductor silicon wafers, power devices, and compound semiconductor radio frequency chips within the Chinese market.
Insider Ownership: 17.8%
Revenue Growth Forecast: 23.7% p.a.
Hangzhou Lion Electronics is forecasted to achieve significant revenue growth of 23.7% annually, surpassing the CN market average. Despite a low projected return on equity of 5.2%, its earnings are expected to grow by 91.75% per year and become profitable in three years, indicating strong potential for future profitability. Recent financials show sales increased to CNY 2.28 billion, although the company reported a net loss of CNY 54.34 million for the period ending September 2024.
- Click to explore a detailed breakdown of our findings in Hangzhou Lion ElectronicsLtd's earnings growth report.
- In light of our recent valuation report, it seems possible that Hangzhou Lion ElectronicsLtd is trading beyond its estimated value.
Yunnan Energy New Material (SZSE:002812)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Yunnan Energy New Material Co., Ltd. and its subsidiaries provide film products both in China and internationally, with a market capitalization of CN¥29.74 billion.
Operations: Yunnan Energy New Material Co., Ltd.'s revenue primarily comes from its film products offered both domestically and internationally.
Insider Ownership: 30.5%
Revenue Growth Forecast: 19.6% p.a.
Yunnan Energy New Material faces challenges with declining sales and net income, reporting CNY 7.46 billion in sales and CNY 443.5 million in net income for the first nine months of 2024, down from the previous year. Despite this, earnings are forecast to grow significantly at 39.21% annually, outpacing the CN market's average growth rate of 25%. The stock is trading below its estimated fair value but has a low projected return on equity of 5.7%.
- Get an in-depth perspective on Yunnan Energy New Material's performance by reading our analyst estimates report here.
- Our expertly prepared valuation report Yunnan Energy New Material implies its share price may be too high.
Make It Happen
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Looking For Alternative Opportunities?
- 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:002812
Yunnan Energy New Material
Offers film products in China and internationally.
Reasonable growth potential with adequate balance sheet.