Stock Analysis

3 Growth Companies With High Insider Ownership Growing Revenues Up To 44%

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As global markets navigate a choppy start to the year, with U.S. equities facing declines amid inflation concerns and political uncertainties, investors are increasingly focused on companies that can demonstrate resilience through strong fundamentals. In this environment, growth companies with high insider ownership often stand out as potential opportunities due to their alignment of interests between management and shareholders, which can be particularly appealing when revenue growth is robust.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)29.7%24.8%
Propel Holdings (TSX:PRL)23.8%37.6%
CD Projekt (WSE:CDR)29.7%27%
Medley (TSE:4480)34%27.2%
Plenti Group (ASX:PLT)12.8%120.1%
Brightstar Resources (ASX:BTR)16.2%84.5%
Credo Technology Group Holding (NasdaqGS:CRDO)13.2%66.3%
EHang Holdings (NasdaqGM:EH)31.4%79.6%
Elliptic Laboratories (OB:ELABS)26.8%111.4%
Findi (ASX:FND)34.8%112.9%

Click here to see the full list of 1448 stocks from our Fast Growing Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Hunan Kylinsec Technology (SHSE:688152)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hunan Kylinsec Technology Co., Ltd. supplies software products and has a market cap of CN¥3.77 billion.

Operations: Revenue Segments (in millions of CN¥): Hunan Kylinsec Technology Co., Ltd. supplies software products.

Insider Ownership: 38.3%

Revenue Growth Forecast: 44.9% p.a.

Hunan Kylinsec Technology demonstrates significant revenue growth potential, with forecasts suggesting a 44.9% annual increase, outpacing the Chinese market. Despite recent volatility and its removal from the S&P Global BMI Index, insider ownership remains steady without substantial trading activity in recent months. The company reported improved financial performance for the first nine months of 2024, reducing its net loss to CNY 22.94 million from CNY 37.9 million a year ago and is expected to achieve profitability within three years.

SHSE:688152 Ownership Breakdown as at Jan 2025

Focuslight Technologies (SHSE:688167)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Focuslight Technologies Inc. is involved in the R&D, production, and sale of semiconductor laser components and laser optics components both in China and internationally, with a market cap of CN¥5.12 billion.

Operations: The company generates revenue from the research, development, production, and sale of semiconductor laser components and laser optics components across both domestic and international markets.

Insider Ownership: 20.4%

Revenue Growth Forecast: 32.8% p.a.

Focuslight Technologies shows strong growth potential with a forecasted 32.8% annual revenue increase, surpassing the Chinese market's growth rate. Despite recent share price volatility and low return on equity projections, analysts expect a 26.5% stock price rise. The company reported CNY 458.15 million in sales for the first nine months of 2024 but faced a net loss of CNY 51.79 million, contrasting with last year's profit; profitability is anticipated within three years.

SHSE:688167 Ownership Breakdown as at Jan 2025

Wuxi Longsheng TechnologyLtd (SZSE:300680)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Wuxi Longsheng Technology Co., Ltd is a Chinese company specializing in the manufacturing of auto parts, with a market cap of CN¥5.08 billion.

Operations: Revenue Segments (in millions of CN¥): The company generates revenue from the manufacturing of auto parts in China.

Insider Ownership: 35.1%

Revenue Growth Forecast: 26.2% p.a.

Wuxi Longsheng Technology Ltd demonstrates strong growth potential, with earnings and revenue expected to grow significantly faster than the Chinese market. The company's recent earnings report showed a substantial increase in net income, rising from CNY 97.08 million to CNY 153.6 million over the past year. Its price-to-earnings ratio of 24.9x is below the market average, indicating good value. However, its dividend sustainability remains questionable due to insufficient free cash flow coverage.

SZSE:300680 Earnings and Revenue Growth as at Jan 2025

Summing It All Up

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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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