As global markets experience a boost from the recent U.S.-China trade agreement, Asian economies are seeing renewed investor interest, particularly in growth companies with strong insider ownership. In this context, companies that combine robust revenue growth prospects with significant insider investment can offer intriguing opportunities for investors seeking to navigate these evolving market conditions.
Top 10 Growth Companies With High Insider Ownership In Asia
Overview: J&T Global Express Limited is an investment holding company providing integrated express delivery services across various countries including China, Indonesia, and Brazil, with a market cap of HK$57.17 billion.
Operations: The company's revenue is primarily derived from its transportation segment, specifically air freight, which amounts to $10.26 billion.
Insider Ownership: 18.9%
Revenue Growth Forecast: 10.5% p.a.
J&T Global Express shows potential as a growth company with high insider ownership in Asia. Its earnings are forecast to grow significantly at 32.4% annually, outpacing the Hong Kong market's 10.5%. Despite a low future Return on Equity of 17.6%, it trades at a substantial discount, 51.1% below estimated fair value. Recent results highlight its profitability turnaround, with net income reaching US$113.7 million from a previous loss, supported by increased sales and parcel volumes.
Overview: Laopu Gold Co., Ltd. designs, manufactures, and sells jewelry products in Mainland China, Hong Kong, and Macau with a market cap of HK$235.43 billion.
Operations: The company's revenue is derived from its Jewelry & Watches segment, which generated CN¥8.51 billion.
Insider Ownership: 22%
Revenue Growth Forecast: 38.1% p.a.
Laopu Gold demonstrates strong growth potential with forecasted earnings and revenue growth rates of 40.5% and 38.1% annually, respectively, surpassing the Hong Kong market averages. Despite high share price volatility recently, its net income surged to CNY 1.47 billion from CNY 416.3 million last year, reflecting robust financial performance. The company completed a follow-on equity offering raising HKD 2.72 billion, indicating strategic capital expansion for future growth initiatives.
Overview: Bestechnic (Shanghai) Co., Ltd. focuses on the research, design, development, manufacture, and sale of smart audio and video SoC chips in China with a market cap of CN¥49.82 billion.
Operations: The company generates revenue primarily from its Integrated Circuit segment, amounting to CN¥3.60 billion.
Insider Ownership: 25.6%
Revenue Growth Forecast: 25.7% p.a.
Bestechnic (Shanghai) shows promising growth with forecasted earnings and revenue increases of 29.3% and 25.7% annually, outpacing the Chinese market averages. Recent financial results highlight significant improvement, with Q1 net income rising to CNY 190.52 million from CNY 27.6 million a year ago, driven by sales of CNY 994.5 million compared to CNY 653.19 million previously reported, underscoring its strong performance despite an unstable dividend track record and low future return on equity expectations at 13.4%.
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:1519 SEHK:6181 and SHSE:688608.
