Three Growth Companies On Chinese Exchange With Insider Ownership And Up To 37% Revenue Growth

Amidst a backdrop of fluctuating global markets, Chinese equities have shown resilience, with the Shanghai Composite Index experiencing modest gains. This market scenario presents an intriguing opportunity to explore growth companies in China that are characterized by high insider ownership and substantial revenue growth. In today's investment landscape, understanding the interplay between insider ownership and company performance can provide valuable insights, particularly in a market as diverse and rapidly evolving as China's.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Anhui Huaheng Biotechnology (SHSE:688639)	31.5%	26.5%
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	27.9%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)	24%	22.3%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Arctech Solar Holding (SHSE:688408)	38.7%	25.4%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
UTour Group (SZSE:002707)	23%	33.1%

Click here to see the full list of 363 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

JiangSu Zhenjiang New Energy Equipment (SHSE:603507)

Simply Wall St Growth Rating: ★★★★★☆

Overview: JiangSu Zhenjiang New Energy Equipment Co., Ltd. is a company that specializes in the manufacturing of equipment for new energy sources, with a market capitalization of approximately CN¥4.03 billion.

Operations: The company generates revenue primarily from the manufacturing of new energy equipment.

Insider Ownership: 29.1%

Revenue Growth Forecast: 25.2% p.a.

JiangSu Zhenjiang New Energy Equipment Co. Ltd. demonstrates robust growth potential with earnings and revenue forecasted to outpace the Chinese market significantly, growing at 36.4% and 25.2% per year respectively. Despite a recent drop from the S&P Global BMI Index and a dividend coverage issue, its strategic share buybacks, totaling CNY 30.01 million for 1,129,692 shares, underscore strong insider confidence and commitment to enhancing shareholder value. However, its projected low Return on Equity of 15.5% in three years suggests potential challenges in maintaining profitability levels.

• Click to explore a detailed breakdown of our findings in JiangSu Zhenjiang New Energy Equipment's earnings growth report.
• Upon reviewing our latest valuation report, JiangSu Zhenjiang New Energy Equipment's share price might be too pessimistic.

WG TECH (Jiang Xi) (SHSE:603773)

Simply Wall St Growth Rating: ★★★★★☆

Overview: WG TECH (Jiang Xi) Co., Ltd. operates in the photoelectric glass finishing industry in China, with a market capitalization of approximately CN¥4.31 billion.

Operations: The company generates revenue primarily from its optoelectronics segment, totaling CN¥1.99 billion.

Insider Ownership: 35%

Revenue Growth Forecast: 37.1% p.a.

WG TECH, based in Jiang Xi, China, is poised for notable growth with earnings expected to surge by 78.35% annually. This growth trajectory significantly outpaces the broader market, complemented by a revenue increase forecast at 37.1% per year—also above market trends. However, its Return on Equity is projected at a modest 13.6%, signaling potential efficiency challenges ahead. The company's stock has experienced high volatility recently, yet it trades at good value relative to industry peers.

• Unlock comprehensive insights into our analysis of WG TECH (Jiang Xi) stock in this growth report.
• According our valuation report, there's an indication that WG TECH (Jiang Xi)'s share price might be on the cheaper side.

NSFOCUS Technologies Group (SZSE:300369)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: NSFOCUS Technologies Group Co., Ltd. operates globally, offering Internet and application security services with a market capitalization of approximately CN¥3.84 billion.

Operations: The company generates revenue primarily from the information security industry, totaling CN¥1.71 billion.

Insider Ownership: 10.4%

Revenue Growth Forecast: 15.4% p.a.

NSFOCUS Technologies Group, based in China, shows a mixed financial outlook with forecasted revenue growth of 15.4% per year, slightly above the Chinese market average of 13.6%. Despite this, its Return on Equity is expected to remain low at 5.5% over three years. The company's earnings are anticipated to grow significantly by 110.76% annually as it moves towards profitability within the next three years. Recent shareholder activities include the election of Mr. Liu Chenguang as director, indicating active insider engagement and potential strategic shifts.

• Click here to discover the nuances of NSFOCUS Technologies Group with our detailed analytical future growth report.
• In light of our recent valuation report, it seems possible that NSFOCUS Technologies Group is trading behind its estimated value.

Key Takeaways

• Click this link to deep-dive into the 363 companies within our Fast Growing Chinese Companies With High Insider Ownership screener.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Ready For A Different Approach?

• 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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