Stock Analysis

3 Growth Companies To Consider With Up To 28% Insider Ownership

SHSE:688596
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As global markets navigate a choppy start to the year, with U.S. equities facing pressure from inflation concerns and political uncertainties, investors are increasingly looking for resilient opportunities amidst this volatility. In such an environment, growth companies with significant insider ownership can offer a compelling proposition, as high insider stakes often align management's interests with those of shareholders, potentially fostering long-term value creation.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Duc Giang Chemicals Group (HOSE:DGC)31.4%23.8%
Seojin SystemLtd (KOSDAQ:A178320)30.9%39.9%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
SKS Technologies Group (ASX:SKS)29.7%24.8%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%35.8%
Medley (TSE:4480)34%27.2%
Brightstar Resources (ASX:BTR)16.2%84.5%
Fine M-TecLTD (KOSDAQ:A441270)17.2%131.1%
Findi (ASX:FND)34.8%112.9%

Click here to see the full list of 1438 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Shanghai GenTech (SHSE:688596)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai GenTech Co., Ltd. offers process critical system solutions to hi-tech and advanced manufacturing industries in China, with a market cap of CN¥9.65 billion.

Operations: Shanghai GenTech Co., Ltd. generates its revenue by providing essential system solutions to customers within China's hi-tech and advanced manufacturing sectors.

Insider Ownership: 13.5%

Shanghai GenTech has demonstrated solid growth, with earnings increasing by 17.9% over the past year and revenue reaching CNY 3.50 billion for the first nine months of 2024. The company is trading at a favorable price-to-earnings ratio of 22.9x, below the Chinese market average, indicating good relative value compared to peers. However, despite high expected annual profit growth of 32%, its dividend yield remains low and not well covered by free cash flows.

SHSE:688596 Earnings and Revenue Growth as at Jan 2025
SHSE:688596 Earnings and Revenue Growth as at Jan 2025

Ingenic SemiconductorLtd (SZSE:300223)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ingenic Semiconductor Co., Ltd. focuses on the research, development, design, and sale of integrated circuit chip products both in China and internationally, with a market cap of CN¥29.56 billion.

Operations: The company's revenue is derived from its activities in the research, development, design, and sale of integrated circuit chip products across domestic and international markets.

Insider Ownership: 16.7%

Ingenic Semiconductor Ltd. exhibits strong growth potential, with forecasted annual earnings and revenue growth rates of 38.4% and 25.1%, respectively, outpacing the Chinese market averages. Despite a recent decline in earnings to CNY 304.42 million for the first nine months of 2024, its innovative collaboration with InnoPhase IoT on AI-enabled battery camera technology positions it well for future expansion in smart home and industrial IoT markets, enhancing its competitive edge amidst evolving industry demands.

SZSE:300223 Ownership Breakdown as at Jan 2025
SZSE:300223 Ownership Breakdown as at Jan 2025

Leyard Optoelectronic (SZSE:300296)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Leyard Optoelectronic Co., Ltd. is an audio-visual technology company operating in China and internationally, with a market cap of CN¥14.61 billion.

Operations: Leyard Optoelectronic Co., Ltd. generates its revenue through various segments in the audio-visual technology sector, serving both domestic and international markets.

Insider Ownership: 28.6%

Leyard Optoelectronic is positioned for significant earnings growth, forecasted at 71% annually, surpassing the Chinese market's average. However, its revenue growth of 17.2% lags behind expectations for high-growth companies. The company faces challenges with a volatile share price and declining profit margins from 3.7% to 0.09%. Despite no recent insider trading activity, it trades at good value compared to peers and completed a modest buyback worth CNY 22.4 million in late 2024.

SZSE:300296 Earnings and Revenue Growth as at Jan 2025
SZSE:300296 Earnings and Revenue Growth as at Jan 2025

Key Takeaways

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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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