Three High-Insider Growth Stocks On The Chinese Exchange

As Chinese equities show mixed performance amid weak manufacturing data, investors are increasingly focused on identifying resilient growth opportunities in the market. One key indicator of a promising stock is high insider ownership, which often signals strong confidence from those closest to the company.

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%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
Arctech Solar Holding (SHSE:688408)	38.7%	28.4%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
UTour Group (SZSE:002707)	23%	36.1%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	82.1%

Click here to see the full list of 361 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Zhuzhou Huarui Precision Cutting ToolsLtd (SHSE:688059)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zhuzhou Huarui Precision Cutting Tools Ltd (ticker: SHSE:688059) specializes in the production of high-precision cutting tools and has a market cap of CN¥2.99 billion.

Operations: Zhuzhou Huarui Precision Cutting Tools Ltd (ticker: SHSE:688059) specializes in the production of high-precision cutting tools and has a market cap of CN¥2.99 billion. The company's revenue segments are as follows (in millions of CN¥):

Insider Ownership: 15.7%

Earnings Growth Forecast: 26.8% p.a.

Zhuzhou Huarui Precision Cutting Tools Ltd. exhibits strong growth potential with high insider ownership, reflected in its recent earnings report showing a rise in sales to CNY 410.42 million and net income of CNY 71.94 million for the half-year ended June 30, 2024. The company's earnings are forecast to grow significantly at 26.81% per year, outpacing the CN market's expected growth rate of 22%. However, its dividend yield of 1.65% is not well covered by free cash flows.

• Navigate through the intricacies of Zhuzhou Huarui Precision Cutting ToolsLtd with our comprehensive analyst estimates report here.
• Upon reviewing our latest valuation report, Zhuzhou Huarui Precision Cutting ToolsLtd's share price might be too pessimistic.

Shanghai Sanyou Medical (SHSE:688085)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai Sanyou Medical Co., Ltd. researches, develops, manufactures, and sells orthopedic implants in China with a market cap of CN¥4.50 billion.

Operations: The company's revenue segments include the research, development, manufacturing, and sales of orthopedic implants in China.

Insider Ownership: 31.6%

Earnings Growth Forecast: 42.7% p.a.

Shanghai Sanyou Medical demonstrates strong growth potential, with earnings expected to grow 42.71% annually over the next three years, significantly outpacing the Chinese market's forecast of 22%. Revenue is projected to increase by 31.8% per year, also surpassing market expectations. Despite this growth outlook, profit margins have declined from last year's 28.3% to 15.2%, and Return on Equity is forecasted to be low at 8.9%.

• Dive into the specifics of Shanghai Sanyou Medical here with our thorough growth forecast report.
• In light of our recent valuation report, it seems possible that Shanghai Sanyou Medical is trading beyond its estimated value.

Hangzhou Bio-Sincerity Pharma-TechLtd (SZSE:301096)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hangzhou Bio-Sincerity Pharma-Tech Ltd (ticker: SZSE:301096) is a pharmaceutical company with a market cap of CN¥4.93 billion, focusing on the development and production of innovative medical treatments.

Operations: The company's revenue from biotechnology amounts to CN¥1.07 billion.

Insider Ownership: 35.1%

Earnings Growth Forecast: 29.5% p.a.

Hangzhou Bio-Sincerity Pharma-TechLtd. shows robust growth prospects with earnings projected to rise 29.55% annually, surpassing the Chinese market's 22%. Revenue is expected to grow at 27.7% per year, also outpacing market expectations. The company's Price-To-Earnings ratio of 17.2x is lower than the CN market average of 27.5x, indicating good relative value. However, Return on Equity is forecasted to be modest at 15.3% in three years' time.

• Take a closer look at Hangzhou Bio-Sincerity Pharma-TechLtd's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential undervaluation of Hangzhou Bio-Sincerity Pharma-TechLtd shares in the market.

Turning Ideas Into Actions

• Investigate our full lineup of 361 Fast Growing Chinese Companies With High Insider Ownership right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• 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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