As global markets exhibit mixed signals with record highs in major indices and concerns over manufacturing slowdowns, investors are navigating through a landscape marked by both opportunity and caution. In such an environment, growth companies with high insider ownership can offer a compelling case for stability and confidence, as insiders' substantial equity stakes often align their interests closely with those of shareholders.
Top 10 Growth Companies With High Insider Ownership
Overview: V.S. Industry Berhad is an investment holding company that specializes in manufacturing, assembling, and selling electronic and electrical products as well as plastic molded components and parts, with a market capitalization of approximately MYR 4.26 billion.
Operations: V.S. Industry Berhad generates its revenue primarily from Malaysia with MYR 3.84 billion, followed by Singapore at MYR 942.62 million, Indonesia with MYR 292.96 million, and China contributing MYR 49.87 million.
Insider Ownership: 28.4%
Earnings Growth Forecast: 23% p.a.
V.S. Industry Berhad, a company with high insider ownership, is expected to see its earnings grow significantly at 23% annually, outpacing the Malaysian market's average of 12.2%. However, its revenue growth at 10.4% per year is modest compared to the broader industry but still exceeds the local market forecast of 6%. Despite this positive outlook in earnings and revenue, recent financial reports indicate a downturn with sales and net income declining from the previous year's figures. The company maintains a lower than industry average P/E ratio at 27.9x but has an unstable dividend track record and no recent substantial insider buying or selling reported.
Overview: iFAST Corporation Ltd. operates as a financial services provider offering investment products and services across Singapore, Hong Kong, Malaysia, China, and the United Kingdom, with a market capitalization of approximately SGD 2.09 billion.
Operations: The firm generates revenue from offering investment products and services across multiple regions including Singapore, Hong Kong, Malaysia, China, and the United Kingdom.
Insider Ownership: 28.7%
Earnings Growth Forecast: 30.8% p.a.
iFAST Corporation, recognized for high insider ownership, recently launched its inaugural SGD 100 million bond issue. Despite a slight dividend decrease to 1.30 cents per share, the company's Q1 earnings surged to SGD 14.51 million from SGD 2.98 million year-over-year, driven by significant revenue growth to SGD 85.96 million. Forecasted annual profit growth is robust at 30.8%, outstripping Singapore's market average significantly, with insiders actively acquiring shares over the past three months, underscoring their confidence in the firm’s trajectory.
Overview: 11 bit studios S.A. is a global developer and distributor of cross-platform video games, with a market capitalization of approximately PLN 1.70 billion.
Operations: The company generates its revenue through the production and sale of video games on various platforms globally.
Insider Ownership: 16.4%
Earnings Growth Forecast: 33.9% p.a.
11 bit studios, despite a recent net loss of PLN 1.61 million and a year-over-year decline in annual sales from PLN 74.21 million to PLN 52.27 million, is forecasted to become profitable within three years with expected revenue growth of 8.6% per year—outpacing the Polish market's 4.5%. The company's projected Return on Equity is high at 22.1% in three years, indicating potential for strong future performance despite current financial setbacks and lack of insider trading activity over the past three months.
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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.
