Stock Analysis

3 Growth Stocks With High Insider Ownership And 56% Earnings Growth

SZSE:002735
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As global markets face pressure from rising U.S. Treasury yields and tepid economic growth, investors are keenly observing how these factors influence equity performance. In this environment, growth stocks with high insider ownership can be particularly appealing, as they often reflect strong confidence from those closest to the company and have shown resilience amid broader market fluctuations.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)23.5%24.6%
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%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Findi (ASX:FND)35.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1523 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

ArcSoft (SHSE:688088)

Simply Wall St Growth Rating: ★★★★★☆

Overview: ArcSoft Corporation Limited is a global algorithm and software solution provider in the computer vision industry, with a market cap of CN¥13.66 billion.

Operations: ArcSoft Corporation Limited generates revenue through its algorithm and software solutions in the computer vision industry.

Insider Ownership: 34.5%

Earnings Growth Forecast: 38.9% p.a.

ArcSoft shows strong growth potential with forecasted revenue and earnings growth rates of 23.5% and 38.9% per year, respectively, outpacing the Chinese market averages. However, its return on equity is expected to remain low at 7.7%. Recent financial results indicate steady progress with nine-month sales reaching CNY 573.68 million and net income at CNY 88.29 million, reflecting modest year-over-year improvements despite a volatile share price and unsustainable dividend coverage.

SHSE:688088 Earnings and Revenue Growth as at Oct 2024
SHSE:688088 Earnings and Revenue Growth as at Oct 2024

Shenzhen Prince New MaterialsLtd (SZSE:002735)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Prince New Materials Co., Ltd. produces and sells packaging materials in China, with a market cap of CN¥3.77 billion.

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Insider Ownership: 38.2%

Earnings Growth Forecast: 56.7% p.a.

Shenzhen Prince New Materials Ltd. exhibits significant growth potential with forecasted earnings growth of 56.7% annually, surpassing the Chinese market average. Despite a projected revenue increase of 17.2% per year, recent financial results show a decline in net income to CNY 12.88 million for the nine months ending September 2024, compared to CNY 17.37 million previously. While insider ownership is high, shareholder dilution occurred over the past year and return on equity remains low at an expected 9.4%.

SZSE:002735 Earnings and Revenue Growth as at Oct 2024
SZSE:002735 Earnings and Revenue Growth as at Oct 2024

Winning Health Technology Group (SZSE:300253)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Winning Health Technology Group Co., Ltd. operates in the healthcare technology sector with a market capitalization of approximately CN¥16.72 billion.

Operations: Winning Health Technology Group Co., Ltd. operates in the healthcare technology sector with a market capitalization of approximately CN¥16.72 billion.

Insider Ownership: 19.8%

Earnings Growth Forecast: 34% p.a.

Winning Health Technology Group's earnings are projected to grow significantly at 34% annually, outpacing the Chinese market. Despite this, their return on equity is expected to remain low at 10.8%. Recent earnings show stable revenue growth with CNY 1.91 billion for the first nine months of 2024, slightly up from last year. The price-to-earnings ratio of 46.4x suggests it is valued below its industry average, indicating potential value for investors focused on growth companies with high insider ownership.

SZSE:300253 Ownership Breakdown as at Oct 2024
SZSE:300253 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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