Asian Growth Stocks With High Insider Ownership To Watch
editorial-team@simplywallst.com (Simply Wall St)
4 min read
In the midst of global economic uncertainties and cautious investor sentiment, Asian markets have shown resilience, with China's recent data indicating a solid start to the year despite ongoing challenges in the property sector. As investors navigate these complex conditions, companies exhibiting strong growth potential coupled with high insider ownership can present compelling opportunities for those looking to align interests and potentially benefit from internal confidence in future prospects.
Top 10 Growth Companies With High Insider Ownership In Asia
Overview: People & Technology Inc. specializes in providing machinery for coating, calendaring, slitting, and automation with a market cap of ₩1.16 trillion.
Operations: Revenue Segments (in millions of ₩): Coating machinery ₩37,500, Calendaring equipment ₩42,300, Slitting technology ₩28,700, Automation systems ₩53,200.
Insider Ownership: 15.1%
People & Technology exhibits strong growth characteristics with high insider ownership. The company's revenue is forecast to grow at 23.4% annually, outpacing the Korean market's 8.2% growth rate, while trading at a significant discount of 39.7% below its estimated fair value. Despite slower earnings growth of 7.72% per year compared to the market, its high-quality earnings and expected return on equity of 20.6% in three years highlight potential for long-term value creation.
Overview: SolaX Power Network Technology (Zhejiang) Co., Ltd. (SHSE:688717) specializes in the development and production of solar inverter technology, with a market cap of CN¥8.65 billion.
Operations: The company's revenue primarily comes from its Electronic Components & Parts segment, totaling CN¥3.07 billion.
Insider Ownership: 35.1%
SolaX Power Network Technology (Zhejiang) is positioned for substantial growth, with revenue forecasted to expand at 31.4% annually, surpassing the Chinese market's growth rate. Despite a recent drop in sales and net income, the company trades below its estimated fair value by 23%. The introduction of the TRENE Liquid-Cooling Energy Storage System highlights SolaX's innovative edge in energy solutions. Earnings are expected to grow significantly at 57% per year, indicating strong future potential.
Overview: Wuhan Jingce Electronic Group Co., Ltd engages in the research, development, production, and sale of display, semiconductor, and new energy detection systems with a market cap of CN¥18.89 billion.
Operations: The company generates revenue from its Electron Product segment, amounting to CN¥2.72 billion.
Insider Ownership: 37.3%
Wuhan Jingce Electronic Group Ltd. is poised for robust growth, with earnings projected to rise by 33.3% annually, outpacing the Chinese market's 25.2%. Revenue is also expected to grow at a strong rate of 22.5% per year. However, the company's debt coverage by operating cash flow remains a concern. Recent board changes include new non-independent and independent directors, potentially influencing strategic direction amid high insider ownership levels.
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 KOSDAQ:A137400 SHSE:688717 and SZSE:300567.
