3 Chinese Growth Companies With Insider Ownership As High As 32%

As Chinese stocks retreated amid mixed economic signals and deflationary pressures, investors are increasingly looking for growth companies with strong insider ownership as a sign of confidence and alignment with shareholder interests. In this article, we will explore three Chinese growth companies where insiders hold as much as 32% ownership, highlighting how such stakes can be indicative of robust potential in the current market landscape.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	27.9%
Arctech Solar Holding (SHSE:688408)	38.7%	28.4%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Eoptolink Technology (SZSE:300502)	26.7%	39.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	82.1%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 366 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.

Hoymiles Power Electronics (SHSE:688032)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hoymiles Power Electronics Inc. manufactures and sells module level power electronics (MLPE) solutions in China and internationally, with a market cap of CN¥16.18 billion.

Operations: Hoymiles Power Electronics Inc. generates revenue through the manufacture and sale of module level power electronics (MLPE) solutions both domestically and internationally.

Insider Ownership: 11.2%

Hoymiles Power Electronics is experiencing substantial revenue growth, forecasted at 38% annually, outpacing the Chinese market's average of 13.5%. Despite a volatile share price and declining profit margins from 32.9% to 22.7%, its earnings are expected to grow significantly at 34% per year, surpassing market expectations. Recent buyback transactions totaling CNY 200 million reflect strong insider ownership and confidence in the company's future prospects.

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

Zhejiang Zhongxin Fluoride MaterialsLtd (SZSE:002915)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Zhongxin Fluoride Materials Co., Ltd. researches, develops, produces, and sells fluorine fine chemicals in China with a market cap of CN¥3.29 billion.

Operations: The company generates revenue from the research, development, production, and sale of fluorine fine chemicals in China.

Insider Ownership: 21%

Zhejiang Zhongxin Fluoride Materials Ltd. is forecasted to achieve significant revenue growth at 28.2% annually, surpassing the broader Chinese market's growth rate of 13.5%. Earnings are expected to grow substantially at 81.81% per year, with profitability anticipated within three years, which is above average market growth expectations. However, the company's return on equity is projected to be low at 10.2%, and its debt coverage by operating cash flow remains a concern.

• Take a closer look at Zhejiang Zhongxin Fluoride MaterialsLtd's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Zhejiang Zhongxin Fluoride MaterialsLtd shares in the market.

Eaglerise Electric & Electronic (China) (SZSE:002922)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Eaglerise Electric & Electronic (China) Co., Ltd. operates in the electrical and electronic manufacturing sector with a market cap of CN¥6.94 billion.

Operations: Eaglerise Electric & Electronic (China) Co., Ltd. generates revenue from its electrical and electronic manufacturing operations, with a market capitalization of CN¥6.94 billion.

Insider Ownership: 32.2%

Eaglerise Electric & Electronic (China) is forecasted to achieve substantial revenue growth at 27.1% annually, outpacing the broader Chinese market's 13.5%. Earnings are expected to grow significantly at 29.41% per year, surpassing market expectations of 22%. Despite this, the return on equity is projected to be low at 13.6%, and shareholders have experienced dilution over the past year. The company has completed a share buyback worth ¥76.68 million, representing 1.56% of its shares.

• Click to explore a detailed breakdown of our findings in Eaglerise Electric & Electronic (China)'s earnings growth report.
• Our expertly prepared valuation report Eaglerise Electric & Electronic (China) implies its share price may be too high.

Seize The Opportunity

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Looking For Alternative Opportunities?

• 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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