As global markets navigate a mixed start to the new year, with U.S. indices reflecting both gains and challenges, investors are keenly observing economic indicators such as the Chicago PMI and GDP forecasts for insights into future trends. Amidst this backdrop of cautious optimism and strategic adjustments, growth companies with high insider ownership present intriguing opportunities due to their potential alignment of management interests with shareholder value.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Zhejiang Xiantong Rubber&Plastic Co., Ltd specializes in the research, design, production, and sale of automobile parts in China and has a market capitalization of approximately CN¥3.53 billion.
Operations: The company generates revenue primarily from its automotive parts segment, amounting to CN¥1.17 billion.
Insider Ownership: 32.1%
Earnings Growth Forecast: 31.5% p.a.
Zhejiang Xiantong Rubber & Plastic Ltd. shows promising growth prospects with revenue forecasted to grow at 24.3% annually, outpacing the CN market’s 13.5%. Earnings are expected to rise significantly by 31.47% per year, surpassing market averages. Recent financials highlight a strong performance with net income reaching CNY 129.19 million for nine months in 2024, up from CNY 96.96 million the previous year, despite a dividend not fully covered by free cash flows and low future return on equity forecasts.
SHSE:603239 Ownership Breakdown as at Jan 2025
Simply Wall St Growth Rating: ★★★★★☆
Overview: Shanghai AoHua Photoelectricity Endoscope Co., Ltd. is a medical device company that focuses on the research, development, manufacture, and sale of electronic endoscopic equipment and other consumables both in China and internationally, with a market cap of CN¥5.21 billion.
Operations: The company generates revenue primarily from the sale of diagnostic kits and equipment, amounting to CN¥750.04 million.
Insider Ownership: 32.3%
Earnings Growth Forecast: 59.9% p.a.
Shanghai Aohua Photoelectricity Endoscope is positioned for robust growth, with revenue expected to increase by 21.9% annually, outpacing the Chinese market’s average. Earnings are forecasted to grow significantly at 59.9% per year, despite a decline in profit margins from last year’s figures and low future return on equity projections. The company reported CNY 500.55 million in sales for the first nine months of 2024, although net income decreased to CNY 37.3 million from CNY 45.19 million a year earlier.
SHSE:688212 Ownership Breakdown as at Jan 2025
Simply Wall St Growth Rating: ★★★★★☆
Overview: Jiangsu TongLin Electric Co., Ltd. is involved in the research, development, and manufacture of photovoltaic connection systems, PV power stations, electrical equipment, cables and wires, and industrial automation solutions in China with a market cap of CN¥2.97 billion.
Operations: The company generates revenue from photovoltaic connection systems (CN¥1.25 billion), PV power stations (CN¥980 million), electrical equipment (CN¥1.10 billion), cables and wires (CN¥850 million), and industrial automation solutions (CN¥670 million).
Insider Ownership: 29.8%
Earnings Growth Forecast: 43.3% p.a.
Jiangsu TongLin Electric is set for impressive growth, with revenue anticipated to rise by 26.2% annually, surpassing the Chinese market average. Earnings are expected to grow significantly at 43.3% per year, though profit margins have decreased from last year and return on equity forecasts remain low. Recent earnings reported CNY 1.21 billion in sales for the first nine months of 2024, but net income dropped to CNY 70.84 million from CNY 145.19 million a year ago.
SZSE:301168 Earnings and Revenue Growth as at Jan 2025
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 SHSE:603239 SHSE:688212 and SZSE:301168.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
