As global markets navigate a choppy start to the year, characterized by inflation concerns and political uncertainties, investors are closely watching for signs of stability amid fluctuating indices. In such an environment, growth companies with high insider ownership can offer unique insights into potential earnings expansion, as insiders often have a vested interest in the company's long-term success.
Top 10 Growth Companies With High Insider Ownership
Overview: DPC Dash Ltd, along with its subsidiaries, operates a chain of fast-food restaurants in the People’s Republic of China and has a market cap of HK$9.73 billion.
Operations: The company generates revenue of CN¥3.72 billion from its chain of fast-food restaurants in the People’s Republic of China.
Insider Ownership: 38.1%
Earnings Growth Forecast: 104.8% p.a.
DPC Dash, Domino's Pizza's master franchisee in China, has shown significant growth with the opening of its 1,000th store and a nearly tenfold expansion since 2017. Despite recent board changes, the company maintains strong insider ownership. It achieved double-digit revenue growth in 2024, reaching RMB 2.04 billion for H1 and reported its first positive net profit. Forecasts indicate continued robust revenue growth at 24.9% annually over three years, outpacing the Hong Kong market average.
Overview: Gan & Lee Pharmaceuticals is a biopharmaceutical company focused on the research, development, production, and sale of insulin analog APIs and injections in China with a market cap of CN¥25.20 billion.
Operations: The company generates revenue of CN¥2.95 billion from the development, production, and sales of insulin and related products.
Insider Ownership: 36.6%
Earnings Growth Forecast: 43.2% p.a.
Gan & Lee Pharmaceuticals, despite being removed from a key index, demonstrates strong growth potential with earnings forecasted to grow significantly above the market average. Recent financial results show substantial revenue and net income increases. The company is advancing its GLP-1 receptor agonist GZR18 through clinical trials, indicating promising product development. However, the dividend yield remains poorly covered by free cash flows. Insider ownership is high but lacks recent insider buying activity.
Overview: BIWIN Storage Technology Co., Ltd. engages in the research, development, design, packaging, testing, production, and sale of semiconductor memories with a market cap of CN¥25.11 billion.
Operations: The company's revenue primarily comes from its semiconductor segment, generating CN¥6.49 billion.
Insider Ownership: 18.9%
Earnings Growth Forecast: 88.8% p.a.
BIWIN Storage Technology shows strong growth prospects with earnings forecasted to grow significantly above the market average. Recent results highlight a substantial turnaround, reporting CNY 5.03 billion in revenue and a net income of CNY 228.12 million for the first nine months of 2024, compared to a loss previously. Despite high-quality earnings impacted by one-off items, its financial position is challenged by interest payments not well covered by earnings. Insider ownership remains significant without recent buying activity.
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 SHSE:603087 and SHSE:688525.
