In a week marked by mixed performances across global markets, growth stocks have notably outpaced their value counterparts, driven by strong gains in sectors like consumer discretionary and information technology. This environment highlights the potential of growth companies with substantial insider ownership, as such alignment can often signal confidence in long-term earnings prospects and strategic direction.
Top 10 Growth Companies With High Insider Ownership
Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally with a market cap of approximately HK$834.17 billion.
Operations: The company generates revenue through its core operations in the automobiles and batteries sectors across various regions, including the People's Republic of China, Hong Kong, Macau, Taiwan, and international markets.
Insider Ownership: 30.1%
Earnings Growth Forecast: 17.6% p.a.
BYD has demonstrated robust growth with recent production and sales volumes significantly surpassing last year's figures, indicating strong operational momentum. The company's earnings grew by 18.1% over the past year, with future earnings projected to increase at a rate of 17.6% annually, outpacing the Hong Kong market average. A strategic partnership with Singing Machine and Stingray enhances its infotainment offerings, potentially boosting consumer appeal. Despite no recent insider trading activity, BYD remains slightly undervalued against its fair value estimate.
Overview: Wondershare Technology Group Co., Ltd. develops application software products in China and internationally, with a market cap of CN¥15.83 billion.
Operations: Unfortunately, the provided text does not include specific revenue segment data for Wondershare Technology Group Co., Ltd.
Insider Ownership: 15.2%
Earnings Growth Forecast: 74.5% p.a.
Wondershare Technology Group is poised for significant earnings growth, with forecasts suggesting a 74.5% annual increase, outpacing the broader Chinese market's growth rate. Despite a recent net loss of CNY 5.5 million, the company continues to innovate with product launches like Virbo Web 2.0 and SelfyzAI 3.0, enhancing its AI-driven offerings in video and image editing. However, revenue growth expectations remain modest at 16.2% annually compared to industry standards.
Overview: Sharetronic Data Technology Co., Ltd. is a global solution provider in wireless networks and smart terminals, with a market cap of CN¥25.50 billion.
Operations: Sharetronic Data Technology Co., Ltd. generates revenue through its operations as a provider of solutions in wireless networks and smart terminals on a global scale.
Insider Ownership: 23.5%
Earnings Growth Forecast: 29.1% p.a.
Sharetronic Data Technology shows strong growth potential, with earnings increasing by 207.5% over the past year and forecasted to grow at 29.1% annually, surpassing the Chinese market average. Revenue is expected to rise significantly at 22.8% per year, outpacing both industry and market benchmarks. Despite high share price volatility recently, its price-to-earnings ratio of 39.3x suggests it is undervalued compared to peers in the tech sector.
Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
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:1211 SZSE:300624 and SZSE:300857.
