Zhiyang Innovation Technology And 2 High Growth Companies With Significant Insider Ownership In Chinese Markets

The Chinese market has shown resilience despite weaker-than-expected economic activity, with the Shanghai Composite Index gaining 0.6% and the blue-chip CSI 300 adding 0.42%. In this environment, growth companies with high insider ownership can be particularly attractive to investors, as they often signal confidence in the company's future prospects from those who know it best.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	28.7%
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
Arctech Solar Holding (SHSE:688408)	38.7%	26.9%
Shandong Longhua New Material (SZSE:301149)	34.4%	42.5%
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%
Xi'an Sinofuse Electric (SZSE:301031)	36.8%	43.1%
Sineng ElectricLtd (SZSE:300827)	36.5%	40.1%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 371 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

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

Zhiyang Innovation Technology (SHSE:688191)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhiyang Innovation Technology Co., Ltd. manufactures and sells power equipment in China and has a market cap of CN¥2.27 billion.

Operations: Zhiyang Innovation Technology Co., Ltd. generates revenue from manufacturing and selling power equipment in China, with a market cap of CN¥2.27 billion.

Insider Ownership: 15.8%

Revenue Growth Forecast: 22.5% p.a.

Zhiyang Innovation Technology has demonstrated strong growth, with earnings increasing by 25.9% over the past year and forecasted to grow at 40.69% annually, outpacing the broader Chinese market's expected growth of 21.9%. Revenue is also projected to rise at 22.5% per year, surpassing market expectations of 13.4%. Despite a low forecasted Return on Equity of 11.5%, recent earnings reports show improved sales and net income for the first half of 2024, indicating robust performance amidst high insider ownership.

• Click to explore a detailed breakdown of our findings in Zhiyang Innovation Technology's earnings growth report.
• Upon reviewing our latest valuation report, Zhiyang Innovation Technology's share price might be too optimistic.

Shenzhen Highpower Technology (SZSE:001283)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Highpower Technology Co., Ltd. specializes in the research, design, development, manufacture, and sale of lithium-ion and nickel-metal hydride batteries in China, with a market cap of CN¥2.67 billion.

Operations: Revenue Segments (in millions of CN¥): Lithium-ion batteries: 1,200.00; Nickel-metal hydride batteries: 800.00

Insider Ownership: 29.7%

Revenue Growth Forecast: 19.2% p.a.

Shenzhen Highpower Technology is expected to see annual earnings growth of 82%, significantly outpacing the broader Chinese market's 21.9%. Revenue is forecasted to grow at 19.2% per year, with recent half-year sales reaching CNY 2.32 billion, up from CNY 1.72 billion a year ago. Despite lower profit margins and a Return on Equity of 14.9%, the company has shown strong insider ownership and recently completed a share buyback worth nearly CNY 100 million.

• Click here and access our complete growth analysis report to understand the dynamics of Shenzhen Highpower Technology.
• Our valuation report unveils the possibility Shenzhen Highpower Technology's shares may be trading at a discount.

Sichuan Shudao Equipment & TechnologyLtd (SZSE:300540)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sichuan Shudao Equipment & Technology Co., Ltd. (ticker: SZSE:300540) specializes in the development and manufacturing of advanced equipment and technology solutions, with a market cap of CN¥3.06 billion.

Operations: Sichuan Shudao Equipment & Technology Ltd. (ticker: SZSE:300540) generates revenue primarily from General Equipment Manufacturing, amounting to CN¥705.82 million.

Insider Ownership: 19.8%

Revenue Growth Forecast: 17.2% p.a.

Sichuan Shudao Equipment & Technology Ltd. reported half-year sales of CNY 150.64 million, up from CNY 112.55 million last year, though net income dropped to CNY 0.17 million from CNY 7.03 million previously. Despite past shareholder dilution, the company has no recent insider trading activity and is expected to see annual earnings growth of 48.7%, outpacing the Chinese market's average of 21.9%. Revenue is forecasted to grow at 17.2% per year, faster than the market's 13.4%.

• Click here to discover the nuances of Sichuan Shudao Equipment & TechnologyLtd with our detailed analytical future growth report.
• Insights from our recent valuation report point to the potential overvaluation of Sichuan Shudao Equipment & TechnologyLtd shares in the market.

Seize The Opportunity

• Embark on your investment journey to our 371 Fast Growing Chinese Companies With High Insider Ownership selection here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Contemplating Other Strategies?

• 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.

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