As global markets continue to navigate the complexities of rising inflation and interest rate expectations, U.S. stock indexes are climbing toward record highs, with growth stocks outperforming value shares. In this environment, companies that demonstrate robust revenue growth and high insider ownership can be particularly appealing as they often signal strong internal confidence and potential for sustained expansion.
Top 10 Growth Companies With High Insider Ownership
Overview: DPC Dash Ltd operates a chain of fast-food restaurants in the People's Republic of China and has a market cap of HK$10.94 billion.
Operations: The company's revenue is primarily derived from its fast-food restaurant operations in the People’s Republic of China, amounting to CN¥3.72 billion.
Insider Ownership: 38.1%
Revenue Growth Forecast: 24.9% p.a.
DPC Dash is forecast to achieve profitability within three years, with expected revenue growth of 24.9% annually, surpassing the Hong Kong market's average. Despite trading at 28% below estimated fair value, its return on equity is projected to remain low at 8.4%. Recent board changes saw Ms. Bin Yu appointed as an independent non-executive director and chairperson of the Audit and Risk Committee, enhancing governance with her extensive financial expertise.
Overview: Shenzhen H&T Intelligent Control Co.Ltd, along with its subsidiaries, engages in the research, development, manufacturing, sales, and marketing of intelligent controller products both in China and internationally; it has a market cap of CN¥18.11 billion.
Operations: Shenzhen H&T Intelligent Control Co.Ltd generates revenue through the research, development, manufacturing, sales, and marketing of intelligent controller products across domestic and international markets.
Insider Ownership: 16.2%
Revenue Growth Forecast: 22.2% p.a.
Shenzhen H&T Intelligent Control Ltd. is expected to see significant earnings growth of 36.9% annually, outpacing the Chinese market average. However, profit margins have declined from 6.3% to 3.9%. Revenue growth is forecast at 22.2%, also above market rates, though return on equity remains low at an estimated 13.8%. The company has completed a share buyback of over CNY100 million, and a shareholder meeting will address stock repurchase and capital changes in January 2025.
Overview: Guangdong Shenling Environmental Systems Co., Ltd. (SZSE:301018) operates in the environmental systems industry and has a market cap of CN¥10.16 billion.
Operations: Guangdong Shenling Environmental Systems Co., Ltd. (SZSE:301018) operates in the environmental systems industry with a market cap of CN¥10.16 billion, though specific revenue segments are not provided in the available data.
Insider Ownership: 38.7%
Revenue Growth Forecast: 20.6% p.a.
Guangdong Shenling Environmental Systems is poised for significant growth, with earnings forecast to increase by 39.64% annually, surpassing the Chinese market average. Despite this, profit margins have decreased from 7.1% to 3.8%, and return on equity is projected at a modest 9.7%. Revenue growth is expected at 20.6%, exceeding market rates. Recently, Zhang Yu acquired a 5% stake for approximately CNY320 million, highlighting substantial insider interest in the company’s future prospects.
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.
Companies discussed in this article include SEHK:1405 SZSE:002402 and SZSE:301018.
