As global markets experience broad-based gains with U.S. indexes nearing record highs, investors are navigating a landscape marked by strong labor market data and stabilizing economic indicators. In such an environment, growth companies with significant insider ownership can be particularly appealing, as they often signal confidence from those who know the business best and align management interests with shareholders.
Top 10 Growth Companies With High Insider Ownership
Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, pharmaceutical e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market cap of HK$57.41 billion.
Operations: The company generates revenue from the distribution and development of pharmaceutical and healthcare business, amounting to CN¥28.34 billion.
Insider Ownership: 19.3%
Alibaba Health Information Technology shows strong growth potential with earnings increasing by 47.7% over the past year and a forecasted annual growth of 21.5%, outpacing the Hong Kong market's average. Recent earnings reported for the half-year ended September 2024 showed sales of CNY 14.27 billion, up from CNY 12.96 billion a year earlier, and net income rising significantly to CNY 768.95 million, reflecting robust operational performance despite share price volatility and low forecasted return on equity (13%).
Overview: XGD Inc., along with its subsidiaries, is involved in the research, development, manufacturing, sales, and servicing of payment terminals both in China and internationally, with a market cap of CN¥13.73 billion.
Operations: The company's revenue is primarily derived from its activities in the research, development, manufacturing, sales, and servicing of payment terminals across domestic and international markets.
Insider Ownership: 38.5%
XGD Inc. exhibits growth potential with earnings expected to rise significantly at 36.8% annually, surpassing the Chinese market average. Despite a recent dip in revenue and net income for the nine months ending September 2024, it trades at a substantial discount to estimated fair value and offers good relative value compared to peers. However, past shareholder dilution and high share price volatility present risks, while insider trading activity remains limited over recent months.
Overview: Beijing Enlight Media Co., Ltd. is involved in the investment, production, and distribution of film and television projects in China with a market cap of CN¥25.26 billion.
Operations: Beijing Enlight Media's revenue is derived from its activities in film and television investment, production, and distribution within China.
Insider Ownership: 12.1%
Beijing Enlight Media shows promising growth potential, with earnings forecasted to increase significantly at 36.5% annually, outpacing the Chinese market average. Recent earnings results for the nine months ending September 2024 reveal sales of CNY 1.44 billion and net income of CNY 460.88 million, marking substantial year-over-year improvements. While revenue is expected to grow slower than 20% per year, it still exceeds the broader CN market growth rate of 13.8%.
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:241 SZSE:300130 and SZSE:300251.
