Unveiling 3 High Insider Ownership Growth Companies On Chinese Exchange With At Least 16% Revenue Growth

Amidst a backdrop of global economic fluctuations, Chinese equities have shown resilience, with the Shanghai Composite Index remaining broadly flat despite challenges such as a contraction in manufacturing. This stability makes it an opportune time to consider growth companies with high insider ownership in China, which often signal strong confidence in future prospects from those closest to the company.

Top 10 Growth Companies With High Insider Ownership In China

Name

Insider Ownership

Earnings Growth

KEBODA TECHNOLOGY (SHSE:603786)

12.8%

25.1%

Arctech Solar Holding (SHSE:688408)

38.6%

24.5%

Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)

22%

54.9%

Sineng ElectricLtd (SZSE:300827)

36.5%

39.8%

Eoptolink Technology (SZSE:300502)

26.7%

39.4%

Anhui Huaheng Biotechnology (SHSE:688639)

31.5%

28.4%

Fujian Wanchen Biotechnology Group (SZSE:300972)

15.3%

75.9%

UTour Group (SZSE:002707)

24%

33.1%

Xi'an Sinofuse Electric (SZSE:301031)

36.8%

43.1%

Offcn Education Technology (SZSE:002607)

26.1%

65.3%

Click here to see the full list of 400 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Eyebright Medical Technology (Beijing)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Eyebright Medical Technology (Beijing) Co., Ltd. is a healthcare company with a market capitalization of CN¥15.35 billion, specializing in the development and manufacturing of medical devices.

Operations: The company generates revenue primarily from its medical products segment, amounting to CN¥1.07 billion.

Insider Ownership: 21.5%

Revenue Growth Forecast: 29.0% p.a.

Eyebright Medical Technology (Beijing) is experiencing robust growth with its revenue and earnings forecast to expand significantly, outpacing the Chinese market averages. Despite a low forecasted Return on Equity of 17.7%, the company's stock is considered undervalued, trading 27.8% below estimated fair value. Recent activities include a successful share buyback and strong Q1 results, showing a substantial increase in sales and net income compared to last year, reinforcing its growth trajectory amidst high insider ownership concerns.

SHSE:688050 Earnings and Revenue Growth as at Jun 2024
SHSE:688050 Earnings and Revenue Growth as at Jun 2024

Jiangsu Azure

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Jiangsu Azure Corporation operates in the lithium battery, LED chips, and metal logistics and distribution sectors within China, with a market capitalization of approximately CN¥9.70 billion.

Operations: The company generates its revenue from three primary sectors: lithium batteries, LED chips, and metal logistics and distribution.

Insider Ownership: 15.3%

Revenue Growth Forecast: 16.6% p.a.

Jiangsu Azure is poised for substantial growth with earnings expected to increase by 37.74% annually, outperforming the broader Chinese market. However, its Return on Equity is projected to remain low at 8.6%. Recent financials show a rebound, with first-quarter sales rising to CNY 1.43 billion and net income shifting from a loss to CNY 70.67 million year-over-year. Despite these gains, the company has reduced its dividend payout three times this year, reflecting potential caution in cash management amidst expansion efforts.

SZSE:002245 Earnings and Revenue Growth as at Jun 2024
SZSE:002245 Earnings and Revenue Growth as at Jun 2024

Shanghai Yaoji Technology

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai Yaoji Technology Co., Ltd. operates in the mobile gaming, poker, and internet innovative marketing sectors both domestically and internationally, with a market capitalization of approximately CN¥9.59 billion.

Operations: The company generates revenue from three primary segments: mobile gaming, poker, and internet innovative marketing.

Insider Ownership: 39.6%

Revenue Growth Forecast: 16.9% p.a.

Shanghai Yaoji Technology, with its earnings forecast to grow at 25.3% annually, is outpacing the Chinese market's expected 23.1% growth. The firm's revenue growth also surpasses market averages, although it remains below the high-growth threshold of 20%. Despite a favorable price-to-earnings ratio of 18.6x compared to the market's 30.7x, its dividend coverage by cash flows is weak. Recent shareholder meetings have focused on profit distribution and future remuneration plans, indicating active engagement but raising concerns about cash flow sustainability in supporting dividends.

SZSE:002605 Ownership Breakdown as at Jun 2024
SZSE:002605 Ownership Breakdown as at Jun 2024

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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 SHSE:688050SZSE:002245 and SZSE:002605

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