Stock Analysis

Top Chinese Growth Stocks With High Insider Ownership

Published

As Chinese stocks recently experienced a dip amid cautious market sentiment, investors are increasingly focusing on companies with strong growth potential and high insider ownership. In this environment, stocks that combine robust growth prospects with significant insider stakes can offer a compelling investment narrative.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)18%28.7%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)22%54.9%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Arctech Solar Holding (SHSE:688408)38.7%26.9%
Ningbo Deye Technology Group (SHSE:605117)23.4%30.4%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Eoptolink Technology (SZSE:300502)26.7%38.8%
Sineng ElectricLtd (SZSE:300827)36.5%42.4%
UTour Group (SZSE:002707)23%36.1%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%

Click here to see the full list of 379 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Ningbo Sanxing Medical ElectricLtd (SHSE:601567)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ningbo Sanxing Medical Electric Co., Ltd. manufactures and sells power distribution and utilization systems in China and internationally, with a market cap of CN¥43.35 billion.

Operations: The company generates revenue from the manufacturing and sale of power distribution and utilization systems both domestically and internationally.

Insider Ownership: 23.8%

Earnings Growth Forecast: 18.5% p.a.

Ningbo Sanxing Medical Electric Ltd. has demonstrated robust growth, with recent earnings showing a significant increase in revenue to CNY 6.99 billion and net income rising to CNY 1.15 billion for the half year ended June 30, 2024. The company's revenue is forecasted to grow at over 20% annually, outpacing the Chinese market average of 13.4%. Insider ownership remains high, and the stock trades at a discount relative to its estimated fair value despite no recent insider trading activity.

SHSE:601567 Earnings and Revenue Growth as at Aug 2024

Ecovacs Robotics (SHSE:603486)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ecovacs Robotics Co., Ltd. engages in the research, development, design, manufacture, and sale of robotic products in China and has a market cap of CN¥21.73 billion.

Operations: Ecovacs Robotics generates revenue from the sale of robotic products in China.

Insider Ownership: 27.1%

Earnings Growth Forecast: 36.6% p.a.

Ecovacs Robotics has seen a decline in profit margins from 10.4% to 3.7% over the past year, though its earnings are forecasted to grow significantly at 36.6% per year, outpacing the Chinese market average of 21.9%. Despite being added to the SSE 180 Index recently, revenue growth is expected to be slower than the market at 12.8%. The stock trades at a significant discount relative to its fair value with no recent insider trading activity reported.

SHSE:603486 Ownership Breakdown as at Aug 2024

Huakai Yibai TechnologyLtd (SZSE:300592)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Huakai Yibai Technology Co., Ltd. specializes in providing environmental art design services for indoor spaces in China and has a market cap of CN¥4.25 billion.

Operations: Revenue segments (in millions of CN¥): Huakai Yibai Technology Co., Ltd. generates revenue through environmental art design services for indoor spaces in the People’s Republic of China.

Insider Ownership: 28.6%

Earnings Growth Forecast: 28.0% p.a.

Huakai Yibai Technology Ltd. has reported a rise in sales to CNY 3.52 billion for the first half of 2024, but net income declined to CNY 134.53 million from CNY 207.96 million a year ago, reflecting lower profit margins and earnings per share. Despite these challenges, the company is forecasted to grow its earnings by 28% annually and revenue by 21.2%, outpacing market averages. The stock's price-to-earnings ratio of 16.4x indicates it is undervalued compared to the broader CN market (26x).

SZSE:300592 Ownership Breakdown as at Aug 2024

Next Steps

Curious About Other Options?

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.

Valuation is complex, but we're here to simplify it.

Discover if Ecovacs Robotics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com