Discover 3 Chinese Growth Stocks With High Insider Ownership

China's recent stimulus measures have sparked optimism in global markets, with Chinese stocks experiencing significant gains. This positive momentum provides an opportune backdrop for investors to consider growth companies with high insider ownership, a factor often indicative of strong confidence in the company's future prospects. In this article, we will explore three Chinese growth stocks that not only benefit from the current economic tailwinds but also feature substantial insider ownership, suggesting alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	18%	28.7%
Jiayou International LogisticsLtd (SHSE:603871)	20.6%	24.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)	13.9%	39.2%
Arctech Solar Holding (SHSE:688408)	38.6%	29.9%
Quick Intelligent EquipmentLtd (SHSE:603203)	34.4%	33.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	67.5%
Sineng ElectricLtd (SZSE:300827)	36.5%	41.7%
UTour Group (SZSE:002707)	23%	28.7%
BIWIN Storage Technology (SHSE:688525)	18.8%	116.8%
Offcn Education Technology (SZSE:002607)	25.1%	75.7%

Click here to see the full list of 380 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

IKD (SHSE:600933)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: IKD Co., Ltd. researches, develops, produces, and sells automotive aluminum alloy precision die castings in the United States, Europe, and Asia with a market cap of CN¥15.20 billion.

Operations: The company generates CN¥6.56 billion from its Auto Parts & Accessories segment.

Insider Ownership: 12.2%

IKD Co., Ltd. shows strong growth potential with revenue forecasted to grow 21.8% annually, outpacing the Chinese market's 13.2%. Recent earnings report highlights a rise in sales to CNY 3.22 billion and net income of CNY 449.77 million for H1 2024, reflecting solid performance despite some shareholder dilution over the past year. The company's earnings are expected to grow at a significant rate of 22.4% per year, although slightly below the market average of 23.2%.

• Unlock comprehensive insights into our analysis of IKD stock in this growth report.
• In light of our recent valuation report, it seems possible that IKD is trading behind its estimated value.

Orbbec (SHSE:688322)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Orbbec Inc. designs, manufactures, and sells 3D vision sensors, with a market cap of CN¥11.67 billion.

Operations: The company's revenue segments include the design, manufacture, and sale of 3D vision sensors.

Insider Ownership: 36.5%

Orbbec Inc. demonstrates significant growth potential with earnings forecasted to grow 112.05% annually and revenue expected to increase by 37.8% per year, outpacing the Chinese market's growth rate of 13.2%. Recent earnings results for H1 2024 show sales rising to CNY 212.18 million from CNY 156.09 million a year ago, while net loss decreased substantially to CNY 53.37 million from CNY 140.22 million, reflecting improved financial health despite high share price volatility and low forecasted return on equity (2.6%).

• Get an in-depth perspective on Orbbec's performance by reading our analyst estimates report here.
• The valuation report we've compiled suggests that Orbbec's current price could be inflated.

Naruida Technology (SHSE:688522)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Naruida Technology Co., Ltd. manufactures and sells polarized multifunctional active phased array radars in China, with a market cap of CN¥11.21 billion.

Operations: Naruida Technology's revenue primarily comes from the production and sales of radar products, amounting to CN¥213.10 million.

Insider Ownership: 17.8%

Naruida Technology, added to the S&P Global BMI Index, forecasts substantial revenue growth at 58.3% annually, significantly outpacing the Chinese market's 13.2%. Despite a volatile share price and lower profit margins (23.4%) compared to last year (45.6%), earnings are expected to grow by 68.6% per year. Recent earnings for H1 2024 show modest sales growth but a decline in net income to CNY 5.89 million from CNY 19.37 million a year ago amidst ongoing share buybacks totaling CNY 15.1 million.

• Delve into the full analysis future growth report here for a deeper understanding of Naruida Technology.
• Our comprehensive valuation report raises the possibility that Naruida Technology is priced higher than what may be justified by its financials.

Next Steps

• Access the full spectrum of 380 Fast Growing Chinese Companies With High Insider Ownership by clicking on this link.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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