As escalating trade tensions between the U.S. and China continue to shape global market dynamics, Asian markets are navigating a complex landscape marked by both challenges and opportunities. In such an environment, growth companies with high insider ownership can be particularly appealing, as they often signal strong confidence from those closest to the business in its long-term potential.
Top 10 Growth Companies With High Insider Ownership In Asia
Overview: The Siam Cement Public Company Limited, with a market cap of THB181.20 billion, operates in the cement and building materials, chemicals, and packaging sectors both in Thailand and internationally.
Operations: The company's revenue segments include THB132.78 billion from SCGP, THB25.56 billion from SCG Decor (SCGD), THB210.30 billion from SCG Chemicals (SCGC), THB81.89 billion from SCG Cement and Green Solutions Business, and THB140.17 billion from SCG Smart Living Business and SCG Distribution and Retail Business.
Insider Ownership: 33.6%
Earnings Growth Forecast: 32.3% p.a.
Siam Cement is poised for significant earnings growth at 32.3% annually, outpacing the Thai market's 12.6%. However, its revenue growth lags at 5.8% per year. Insider ownership remains strong, although recent insider trading data is unavailable. The company's financial position shows challenges in covering interest payments with earnings and a volatile share price over three months. Recent board changes and a THB 15 billion debenture issuance highlight ongoing strategic adjustments amidst declining profit margins from last year.
Overview: Shanghai Putailai New Energy Technology Co., Ltd. develops and sells lithium-ion battery materials and automation equipment in China, with a market capitalization of CN¥36.93 billion.
Operations: Shanghai Putailai New Energy Technology Co., Ltd. generates revenue through its involvement in the development and sale of lithium-ion battery materials and automation equipment within China.
Insider Ownership: 37%
Earnings Growth Forecast: 26% p.a.
Shanghai Putailai New Energy Technology Ltd. is trading at a favorable price-to-earnings ratio of 24.3x, below the CN market average of 36x, indicating good value compared to peers. Earnings are expected to grow significantly at 25.97% annually over the next three years, outpacing the CN market's growth rate of 23.8%. Despite these prospects, recent insider trading data is unavailable and its dividend yield of 0.8% isn't well supported by free cash flows.
Overview: Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (SZSE:003021) operates in the machinery and electronics sector, with a market cap of CN¥27.09 billion.
Operations: Shenzhen Zhaowei Machinery & Electronics generates its revenue from various segments within the machinery and electronics sector.
Insider Ownership: 18.2%
Earnings Growth Forecast: 23.2% p.a.
Shenzhen Zhaowei Machinery & Electronics has demonstrated strong earnings growth of 19.8% over the past year, with future earnings expected to grow significantly at 23.22% annually, though slightly below the CN market's rate. Revenue is projected to increase by 20.9% annually, surpassing market expectations. Despite a highly volatile share price recently and low forecasted return on equity in three years (9.2%), no substantial insider trading activity has been reported in the last three months.
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 SET:SCC SHSE:603659 and SZSE:003021.
