Amid a volatile global economy, Chinese stocks have proven resilient, buoyed by strong export data despite domestic challenges. This presents an interesting picture for investors looking at growth companies with high insider ownership on the Chinese stock exchange. High insider ownership often indicates strong confidence from those who know the company’s future best.
Top 10 growing companies with high insider ownership in China
|
name |
Insider Ownership |
Revenue Growth |
|
Ningbo Sunrise LC Technology Co., Ltd. (SZSE:002937) |
24.3% |
27.7% |
|
Shenzhen Woer Heat Shrink Material Co., Ltd. (SZSE:002130) |
19% |
27.9% |
|
Zhejiang Jolly Pharmaceutical Co., Ltd. (SZSE:300181) |
twenty four% |
22.3% |
|
Anhui Huaheng Biotechnology Co., Ltd. (SHSE:688639) |
31.4% |
28.4% |
|
Kevoda Technology (SHSE:603786) |
12.8% |
25.1% |
|
Arctec Solar Holdings (SHSE:688408) |
38.7% |
25.8% |
|
Cubic Sensor and Instrument Co., Ltd. (SHSE:688665) |
10.1% |
34.3% |
|
Suzhou Sanmun Technology Co., Ltd. (SZSE:300522) |
36.5% |
63.4% |
|
Sinen Electric Limited (SZSE:300827) |
36.5% |
39.8% |
|
UTour Group (SZSE:002707) |
twenty three% |
33.1% |
To see the full list of 367 stocks from our Fast Growing China Companies with High Insider Ownership screener click here.
Below, we’ll highlight some of our favorites from our exclusive screener.
Simply Wall St Growth Rating: ★★★★☆☆
overview: Shanghai Milk-Ground Foodtech Co., Ltd. specializes in the production and distribution of cheese and liquid dairy products to both consumer and industrial markets in China, and has a market capitalization of approximately 6.75 billion yuan.
operation: The company’s revenue is derived primarily from the sale of cheese and liquid dairy products to consumer and industrial markets in China.
Insider Ownership: 16.6%
Revenue Growth Forecast: Annual rate 36.6%
Shanghai Milk-Ground Foodtech saw its net profit increase significantly from RMB 24.2 million to RMB 41.3 million in the first quarter of 2024, despite revenues falling to RMB 949.77 million from RMB 1,022.74 million in the same period last year. The company’s shares are trading at a significant discount to their estimated fair value, with analysts predicting significant share price appreciation. Expected profit growth is above the Chinese market average, while revenue growth forecasts lag slightly behind industry leaders.
Simply Wall St Growth Rating: ★★★★★★
overview: Ningbo Sunrise LC Technology Co., Ltd. specializes in the manufacturing and sales of precision components and has a market capitalization of approximately 6.91 billion RMB.
operation: The company generates revenue through the manufacturing and sale of precision components.
Insider Ownership: 24.3%
Revenue Growth Forecast: Annual rate: 27.7%
With significant insider ownership, Ningbo Sunrise LC Technology Co., Ltd. is expected to see strong growth. Revenues have surged 21.6% over the past year and are expected to grow 27.7% annually, outpacing the Chinese market’s 22.2%. Revenue growth is also set to be robust at 27.2% annually, well above the market average of 13.7%. Despite these positive factors, dividend coverage by free cash flow is low. Recent strategic share buybacks underscore our confidence in future performance and our commitment to shareholder value.
Simply Wall St Growth Rating: ★★★★★☆
overview: Lucky Harvest Co., Ltd. specializes in the research, development, production and sales of precision stamping dies and structural metal parts in China, with a market capitalization of approximately 6.44 billion RMB.
operation: The company generates revenue primarily through the development and manufacture of precision stamping dies and structural metal components.
Insider Ownership: 33.9%
Revenue Growth Forecast: Annual rate 26.4%
Lucky Harvest is trading at an attractive price-to-earnings ratio of 14.4, well below the Chinese market average, despite significant insider ownership. The company’s profits have grown 46.4% over the past year and are expected to grow at 26.4% annually over the next three years, above market expectations. Revenue growth has also been solid at 21.5% annually. However, despite recent dividend increases, the sustainability of the dividend remains in question as it is not fully covered by free cash flow.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide 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 of the stocks mentioned. This analysis only considers shares directly held by insiders. It does not include shares indirectly owned through other means such as corporations or trust companies. All forecast revenue and profit growth rates quoted are expressed as 1-3 year annualized growth rates.
Companies featured in this article include SHSE:600882, SZSE:002937 and SZSE:002965.
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