Stock Analysis

Insider-Owned Growth Companies To Watch In June 2024

SZSE:301018
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As global markets continue to navigate through a landscape marked by political turmoil in Europe and mixed economic signals, investors are showing heightened interest in growth companies, particularly those with substantial insider ownership. These firms often signal strong confidence from those closest to the business, aligning well with current market dynamics where discerning long-term value is paramount.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Hartshead Resources (ASX:HHR)13.9%86.3%
Cettire (ASX:CTT)28.7%30.1%
Arctech Solar Holding (SHSE:688408)38.6%24.8%
Gaming Innovation Group (OB:GIG)13.2%36.2%
Fine M-TecLTD (KOSDAQ:A441270)17.3%36.4%
Credo Technology Group Holding (NasdaqGS:CRDO)15%84.1%
UTI (KOSDAQ:A179900)34.1%122.7%
EHang Holdings (NasdaqGM:EH)32.8%101.9%
Seojin SystemLtd (KOSDAQ:A178320)26.4%48.1%
Vow (OB:VOW)31.8%97.6%

Click here to see the full list of 1442 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Shenzhen Jieshun Science and Technology IndustryLtd (SZSE:002609)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Jieshun Science and Technology Industry Co., Ltd. operates in the technology sector, focusing on smart access systems, with a market capitalization of approximately CN¥5.60 billion.

Operations: The company generates revenue primarily from its smart access systems segment.

Insider Ownership: 38%

Revenue Growth Forecast: 16.2% p.a.

Shenzhen Jieshun Science and Technology Industry Co.,Ltd. has demonstrated robust growth, with earnings increasing by 119.5% last year and forecasted to grow at 32.84% annually over the next three years, outpacing the Chinese market's average. Despite this strong profit growth, revenue projections are more moderate at 16.2% annually, slightly above the market trend. The company's Return on Equity is expected to remain low at 9.8%. Recent activities include a dividend payout and an annual general meeting discussing future plans and financial reports.

SZSE:002609 Earnings and Revenue Growth as at Jun 2024
SZSE:002609 Earnings and Revenue Growth as at Jun 2024

Beijing eGOVA Co (SZSE:300075)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beijing eGOVA Co., Ltd. specializes in providing core application services and operational solutions for smart cities across China, with a market capitalization of approximately CN¥9.77 billion.

Operations: The company generates its revenue primarily from core application services and operational solutions tailored for smart cities in China.

Insider Ownership: 27.8%

Revenue Growth Forecast: 24.5% p.a.

Beijing eGOVA Co., Ltd. is positioned for significant growth with forecasted annual earnings and revenue increases of 38.28% and 24.5%, respectively, outstripping the broader Chinese market projections. However, its profit margins have dipped from 17.2% to 11.4% over the past year, indicating some efficiency challenges despite rapid growth. The company's recent activities include multiple dividend affirmations and a substantial share buyback program, signaling confidence from management in its financial health and future prospects.

SZSE:300075 Earnings and Revenue Growth as at Jun 2024
SZSE:300075 Earnings and Revenue Growth as at Jun 2024

Guangdong Shenling Environmental Systems (SZSE:301018)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Shenling Environmental Systems Co., Ltd. is a company that specializes in the manufacture and sale of environmental control systems, with a market capitalization of approximately CN¥5.87 billion.

Operations: The revenue segments for the company are not specified in the provided text.

Insider Ownership: 38.7%

Revenue Growth Forecast: 26.4% p.a.

Guangdong Shenling Environmental Systems Co., Ltd. demonstrates robust growth potential, with revenue and earnings expected to increase by 26.4% and 45.2% per year respectively, outpacing the Chinese market averages of 13.9% and 22.7%. Despite this promising outlook, the company's profit margins have declined from last year, posing a challenge to its efficiency. Additionally, its dividend coverage is weak, reflecting potential cash flow concerns despite recent dividend declarations and high insider ownership that typically signals confidence in management's future plans.

SZSE:301018 Earnings and Revenue Growth as at Jun 2024
SZSE:301018 Earnings and Revenue Growth as at Jun 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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