Three High-Growth Chinese Stocks On The SSE With Insider Ownership Of At Least 16%
As China unveils significant measures to stabilize its property sector and manage economic challenges, the Shanghai Stock Exchange (SSE) presents unique opportunities for investors. In this context, stocks with high insider ownership can be particularly compelling, suggesting a level of confidence from those who know the companies best.
Top 10 Growth Companies With High Insider Ownership In China
Name | Insider Ownership | Earnings Growth |
YanKer shop FoodLtd (SZSE:002847) | 29.2% | 23.9% |
Zhejiang Songyuan Automotive Safety SystemsLtd (SZSE:300893) | 20% | 24.2% |
KEBODA TECHNOLOGY (SHSE:603786) | 12.8% | 25.1% |
Arctech Solar Holding (SHSE:688408) | 38.7% | 25.4% |
Suzhou Sunmun Technology (SZSE:300522) | 37.6% | 63.4% |
Sineng ElectricLtd (SZSE:300827) | 36.5% | 39.8% |
UTour Group (SZSE:002707) | 24% | 33.1% |
Anhui Huaheng Biotechnology (SHSE:688639) | 31.5% | 28.5% |
Jilin University Zhengyuan Information Technologies (SZSE:003029) | 12.1% | 69.2% |
Offcn Education Technology (SZSE:002607) | 26.1% | 72.3% |
Let's dive into some prime choices out of from the screener.
Baowu Magnesium Technology
Simply Wall St Growth Rating: ★★★★★☆
Overview: Baowu Magnesium Technology Co., Ltd. operates in mining, non-ferrous metal smelting, recycling, and processing both in China and globally, with a market capitalization of approximately CN¥13.64 billion.
Operations: The company generates CN¥7.54 billion from non-ferrous metal smelting and rolling activities.
Insider Ownership: 17%
Baowu Magnesium Technology, a notable entity in China's growth sector with high insider ownership, has demonstrated robust financial performance. In Q1 2024, the company reported a revenue increase to CNY 1.86 billion and net income growth to CNY 60.72 million. Despite challenges such as shareholder dilution and dividends not well covered by cash flows, Baowu is poised for significant earnings growth over the next three years, with expected annual profit surging at 47.3% and revenue forecasted to grow by 25.6% annually. These figures suggest a dynamic expansion trajectory but also highlight areas needing strategic oversight regarding financial management and shareholder returns.
Beijing eGOVA Co
Simply Wall St Growth Rating: ★★★★★☆
Overview: Beijing eGOVA Co., Ltd., a smart city core application and operation service provider in China, has a market capitalization of approximately CN¥9.99 billion.
Operations: The company generates its revenue primarily from smart city core application and operation services.
Insider Ownership: 27.8%
Beijing eGOVA Co., Ltd., a Chinese growth company with significant insider ownership, is navigating through a landscape of both opportunities and challenges. The company's earnings are projected to grow by 38.3% annually, outpacing the broader Chinese market's 23.3%. Similarly, revenue growth forecasts at 24.5% annually also exceed market averages. However, profit margins have declined from the previous year and the share price remains highly volatile. Recent activities include share buybacks totaling CNY 100.08 million and consistent dividend payments, reflecting a strategy to enhance shareholder value amidst fluctuating financial metrics.
Changsha Jingjia Microelectronics
Simply Wall St Growth Rating: ★★★★★☆
Overview: Changsha Jingjia Microelectronics Co., Ltd. is a company that specializes in the development and manufacturing of high-performance microelectronics, with a market capitalization of approximately CN¥32.16 billion.
Operations: The revenue segments for the company are not specified in the provided text.
Insider Ownership: 39.3%
Changsha Jingjia Microelectronics, a Chinese growth company with high insider ownership, faces mixed financial dynamics. Despite a challenging profit margin reduction from 25% to 8.4%, the company is poised for robust growth with earnings expected to increase by 46.58% annually and revenue projected to rise at 37.1% per year, significantly outstripping the broader Chinese market's growth rates. Recent financial disclosures reveal an improvement in net losses and a stable dividend proposal, underscoring potential recovery and commitment to shareholder returns.
Next Steps
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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:002182 SZSE:300075 and SZSE:300474.
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