Shanghai Milkground Food Tech And 2 Other High Insider Ownership Growth Stocks On The Chinese Exchange
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Amidst a backdrop of global economic shifts, Chinese stocks have shown resilience, buoyed by strong export data despite domestic challenges. This sets an intriguing stage for investors looking at growth companies with high insider ownership on the Chinese exchange. High insider ownership can often signal strong confidence in the company's future from those who know it best.
Top 10 Growth Companies With High Insider Ownership In China
Overview: Shanghai Milkground Food Tech Co., Ltd specializes in producing and distributing cheese and liquid milk products to both consumer and industrial markets in China, with a market capitalization of approximately CN¥6.75 billion.
Operations: The company's revenue is primarily derived from the sale of cheese and liquid milk products to consumer and industrial markets in China.
Insider Ownership: 16.6%
Earnings Growth Forecast: 36.6% p.a.
Shanghai Milkground Food Tech, despite a revenue dip in Q1 2024 to CNY 949.77 million from CNY 1,022.74 million year-over-year, showed a notable increase in net income to CNY 41.3 million from CNY 24.2 million. The company trades at a significant discount to estimated fair value and analysts forecast a substantial price rise. Expected earnings growth outpaces the Chinese market average, although revenue growth predictions slightly lag behind sector leaders.
Overview: Ningbo Sunrise Elc Technology Co., Ltd specializes in the manufacturing and sale of precision components, with a market capitalization of approximately CN¥6.91 billion.
Operations: The company generates revenue through the manufacture and sale of precision components.
Insider Ownership: 24.3%
Earnings Growth Forecast: 27.7% p.a.
Ningbo Sunrise Elc TechnologyLtd, with substantial insider ownership, is poised for robust growth. Earnings have surged by 21.6% over the past year and are projected to grow at 27.7% annually, outpacing the Chinese market's 22.2%. Revenue growth also remains strong at 27.2% per year, significantly above the market average of 13.7%. Despite these positives, the dividend coverage by free cash flows is weak. Recent strategic share buybacks underscore confidence in future performance and commitment to shareholder value.
Overview: Lucky Harvest Co., Ltd. specializes in the research, development, production, and sale of precision stamping dies and structural metal parts within China, with a market capitalization of approximately CN¥6.44 billion.
Operations: The company generates revenue primarily through the development and manufacturing of precision stamping dies and structural metal components.
Insider Ownership: 33.9%
Earnings Growth Forecast: 26.4% p.a.
Lucky Harvest, demonstrating significant insider ownership, is trading at an attractive price-to-earnings ratio of 14.4x, well below the Chinese market average. Its earnings have grown by 46.4% over the past year and are expected to increase by 26.4% annually for the next three years, surpassing market forecasts. Revenue growth is also robust at 21.5% per year. However, its dividend sustainability is questionable as it's not well covered by free cash flows despite recent dividend increases.
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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.