Three Growth Companies On Chinese Exchange With High Insider Ownership And Up To 70% Earnings Growth

Amidst a backdrop of global economic uncertainties, Chinese equities have shown resilience, with recent data indicating both challenges and opportunities within the economy. As investors navigate this complex landscape, companies with high insider ownership can be particularly compelling, as they often signal strong confidence from those closest to the business in its growth prospects and management.

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'll examine a selection from our screener results.

Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Jolly Pharmaceutical Co., LTD specializes in the research, production, and marketing of Chinese medicinal products, operating both domestically and internationally with a market capitalization of CN¥11.38 billion.

Operations: The company's operations focus on the research, production, and sale of Chinese medicinal products.

Insider Ownership: 24%

Earnings Growth Forecast: 22.3% p.a.

Zhejiang Jolly Pharmaceutical Co.,LTD, a Chinese growth company with high insider ownership, recently approved significant corporate governance changes and director elections emphasizing insider influence. Despite a robust annual revenue increase to CNY 672.9 million and net income of CNY 142.42 million, the company's dividend sustainability is questioned due to inadequate cash flow coverage. Trading below fair value, it offers potential upside with expected annual earnings growth of 22.31% and revenue growth outpacing the market at 23.1%. However, its dividends are not well-covered by cash flows, highlighting financial management challenges amidst expansion.

• Take a closer look at Zhejiang Jolly PharmaceuticalLTD's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential undervaluation of Zhejiang Jolly PharmaceuticalLTD shares in the market.

Sichuan Chuanhuan TechnologyLtd (SZSE:300547)

Simply Wall St Growth Rating: ★★★★★★

Overview: Sichuan Chuanhuan Technology Co., Ltd. specializes in the research, development, production, and sale of automotive rubber hose series products in China, with a market capitalization of approximately CN¥4.30 billion.

Operations: The company generates CN¥1.20 billion from the sale of non-tire rubber products.

Insider Ownership: 33.9%

Earnings Growth Forecast: 24.1% p.a.

Sichuan Chuanhuan TechnologyLtd, a Chinese company with high insider ownership, reported substantial year-over-year growth with first-quarter sales reaching CNY 298.99 million and net income at CNY 44.2 million. The firm's Price-to-Earnings ratio stands attractively at 23.4x, below the broader Chinese market average of 30.7x, signaling potential undervaluation. Forecasts suggest robust future growth with earnings expected to increase by approximately 24% annually and revenue growth projected to surpass the market rate significantly at around 23% per year. However, the company has an unstable dividend track record which might concern income-focused investors.

• Delve into the full analysis future growth report here for a deeper understanding of Sichuan Chuanhuan TechnologyLtd.
• According our valuation report, there's an indication that Sichuan Chuanhuan TechnologyLtd's share price might be on the expensive side.

Beijing Relpow Technology (SZSE:300593)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beijing Relpow Technology Co., Ltd. is a company that manufactures and sells power supply products both in China and internationally, with a market capitalization of approximately CN¥6.02 billion.

Operations: The company generates its revenue through the manufacture and sale of power supply products across domestic and international markets.

Insider Ownership: 31.1%

Earnings Growth Forecast: 70.1% p.a.

Beijing Relpow Technology Co. Ltd., despite its high insider ownership, faces challenges with a highly volatile share price and recent substantial earnings decline, reporting a net loss of CNY 38.57 million in Q1 2024 compared to a net income the previous year. However, it is expected to become profitable within three years with revenue growth projected at 26.2% per year, outpacing the Chinese market's average. Recent corporate actions include dividend cuts and amendments to company bylaws, reflecting potential strategic shifts.

• Click here to discover the nuances of Beijing Relpow Technology with our detailed analytical future growth report.
• Our valuation report here indicates Beijing Relpow Technology may be overvalued.

Key Takeaways

• Click this link to deep-dive into the 400 companies within our Fast Growing Chinese Companies With High Insider Ownership screener.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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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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