Top Growth Companies Insiders Trust In October 2024
editorial-team@simplywallst.com (Simply Wall St)
4 min read
As global markets grapple with rising U.S. Treasury yields and tepid economic growth, investors are increasingly looking for stability and potential in companies that insiders trust. In this environment, stocks with high insider ownership often stand out as they suggest confidence from those closest to the company's operations and future prospects.
Top 10 Growth Companies With High Insider Ownership
Overview: Shenzhen Sunway Communication Co., Ltd. is involved in the research, development, manufacture, and sale of antennas, wireless charging modules, precision connectors and cables, passive components, and EMC/EMI solutions both in China and internationally with a market cap of CN¥24.02 billion.
Operations: Shenzhen Sunway Communication generates revenue through the sale of antennas, wireless charging modules, precision connectors and cables, passive components, and EMC/EMI solutions in both domestic and international markets.
Insider Ownership: 20.5%
Revenue Growth Forecast: 18.8% p.a.
Shenzhen Sunway Communication shows strong growth potential, with earnings expected to grow significantly at 35.7% annually, outpacing the Chinese market. Despite a volatile share price, its price-to-earnings ratio of 44.7x is below the industry average, suggesting relative value. Recent financials indicate solid performance with nine-month revenue reaching CNY 6.39 billion and net income of CNY 533.24 million. The company also completed a share buyback worth CNY 268 million to support equity incentive plans.
Overview: Nanfang Zhongjin Environment Co., Ltd. operates in the general equipment manufacturing sector through its subsidiaries and has a market capitalization of CN¥6.32 billion.
Operations: The company generates revenue from its operations in the general equipment manufacturing sector.
Insider Ownership: 13.7%
Revenue Growth Forecast: 14.5% p.a.
Nanfang Zhongjin Environment anticipates robust earnings growth of 35.1% annually, surpassing the Chinese market's forecast. Despite a dip in nine-month sales to CNY 3.59 billion, net income rose to CNY 251.88 million, reflecting improved profitability. Trading at a significant discount to its estimated fair value enhances its investment appeal. With no recent insider trading activity reported, the company's strong growth trajectory remains a key focus for investors seeking value and potential upside in this sector.
Overview: Semitronix Corporation offers characterization and yield improvement solutions for the semiconductor industry both in China and internationally, with a market cap of CN¥10.92 billion.
Operations: Revenue Segments (in millions of CN¥): Characterization Solutions: 1,200; Yield Improvement Solutions: 800.
Insider Ownership: 34.1%
Revenue Growth Forecast: 36.3% p.a.
Semitronix is poised for significant growth, with earnings expected to rise 48.2% annually, outpacing the Chinese market. Despite a recent decline in net income to CNY 7.71 million for nine months and volatile share prices, revenue growth remains strong at 36.3% annually. The company has completed a substantial share buyback worth CNY 139.65 million, indicating confidence in its future prospects despite challenges such as declining profit margins and low forecasted return on equity.
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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.
Companies discussed in this article include SZSE:300136 SZSE:300145 and SZSE:301095.
