Stock Analysis

3 Chinese Growth Companies With High Insider Ownership Growing Revenues At 26%

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As Chinese stocks experience a surge, buoyed by Beijing's comprehensive support measures despite ongoing economic challenges, investors are increasingly focused on growth companies with strong fundamentals. In this environment, high insider ownership can be an indicator of confidence in a company's potential to capitalize on market opportunities and sustain revenue growth.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)17.9%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)37.8%29.9%
Quick Intelligent EquipmentLtd (SHSE:603203)34.4%33.1%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%38.9%
Suzhou Sunmun Technology (SZSE:300522)36.5%67.5%
UTour Group (SZSE:002707)22.8%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 386 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Asian Star Anchor Chain Jiangsu (SHSE:601890)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Asian Star Anchor Chain Co., Ltd. Jiangsu, with a market cap of CN¥7.62 billion, manufactures and sells anchor chains, marine mooring chains, and related accessories globally through its subsidiaries.

Operations: Revenue Segments (in millions of CN¥): The company generates revenue through the production and distribution of anchor chains, marine mooring chains, and related accessories on a global scale.

Insider Ownership: 37.9%

Revenue Growth Forecast: 22.9% p.a.

Asian Star Anchor Chain Jiangsu demonstrates strong growth potential, with revenue expected to grow at 22.9% annually, outpacing the broader Chinese market. Despite a decline in sales and revenue for the first half of 2024, net income increased to CNY 138.73 million from CNY 109.65 million a year ago, indicating improving profitability. While insider ownership is high, there has been no significant insider trading activity recently. The company's return on equity is forecasted to be modest at 10.5%.

SHSE:601890 Ownership Breakdown as at Oct 2024

Shanghai Beite Technology (SHSE:603009)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai Beite Technology Co., Ltd. specializes in manufacturing chassis parts, automotive air-conditioning compressors, high-precision parts, and aluminum forging lightweight components in China, with a market cap of CN¥8.17 billion.

Operations: The company's revenue is derived from the production of chassis components, automotive air-conditioning compressors, precision-engineered parts, and lightweight aluminum forging products within China.

Insider Ownership: 40%

Revenue Growth Forecast: 20.2% p.a.

Shanghai Beite Technology's revenue is forecast to grow over 20% annually, surpassing the Chinese market average. Earnings are also expected to rise significantly, with a recent half-year net income of CNY 37.9 million compared to CNY 18.8 million last year, indicating robust profitability growth. The company's inclusion in the S&P Global BMI Index highlights its expanding market presence, though its share price remains highly volatile and return on equity is projected at a modest 8%.

SHSE:603009 Earnings and Revenue Growth as at Oct 2024

JHT DesignLtd (SHSE:603061)

Simply Wall St Growth Rating: ★★★★★☆

Overview: JHT Design Co., Ltd. operates in China, focusing on the research, development, production, and sale of semiconductor chip testing equipment with a market cap of CN¥4.04 billion.

Operations: JHT Design Co., Ltd.'s revenue is derived from its activities in the research, development, production, and sale of semiconductor chip testing equipment in China.

Insider Ownership: 23.1%

Revenue Growth Forecast: 26.9% p.a.

JHT Design Ltd. is projected to experience significant growth, with earnings expected to rise 31.9% annually, outpacing the broader Chinese market. Revenue is also set to grow at 26.9% per year, surpassing market averages. Despite these positive forecasts, recent financial results show a decline in net income and sales compared to the previous year. The company's price-to-earnings ratio of 50.8x remains below the industry average, indicating potential value within its sector despite high non-cash earnings levels.

SHSE:603061 Earnings and Revenue Growth as at Oct 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.

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