Exploring Growth And Ownership: 3 Chinese Exchange Stocks With At Least 22% Earnings Growth
Reviewed by Simply Wall St
As global markets navigate through varying economic signals, China's equity landscape has shown resilience amid challenging conditions. The Shanghai Composite Index and the CSI 300 experienced modest losses, reflecting concerns over a slowing economy highlighted by underwhelming manufacturing data. In this context, understanding the role of insider ownership in growth companies becomes particularly pertinent, as high insider stakes often signal confidence in long-term prospects despite short-term market fluctuations.
Top 10 Growth Companies With High Insider Ownership In China
| Name | Insider Ownership | Earnings Growth |
| Zhejiang Jolly PharmaceuticalLTD (SZSE:300181) | 24% | 22.3% |
| Suzhou Shijing Environmental TechnologyLtd (SZSE:301030) | 22% | 54.9% |
| Anhui Huaheng Biotechnology (SHSE:688639) | 31.5% | 28.4% |
| Cubic Sensor and InstrumentLtd (SHSE:688665) | 10.1% | 34.3% |
| KEBODA TECHNOLOGY (SHSE:603786) | 12.8% | 25.1% |
| Arctech Solar Holding (SHSE:688408) | 38.6% | 25.8% |
| Suzhou Sunmun Technology (SZSE:300522) | 36.5% | 63.4% |
| Sineng ElectricLtd (SZSE:300827) | 36.5% | 39.8% |
| Eoptolink Technology (SZSE:300502) | 26.7% | 39.1% |
| UTour Group (SZSE:002707) | 23% | 33.1% |
Here's a peek at a few of the choices from the screener.
Hunan Fangsheng Pharmaceutical (SHSE:603998)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Hunan Fangsheng Pharmaceutical Co., Ltd. is a company based in China that focuses on researching, developing, producing, and selling pharmaceutical products, with a market capitalization of approximately CN¥4.84 billion.
Operations: The company generates its revenue primarily through the research, development, production, and sale of pharmaceutical products in China.
Insider Ownership: 37.1%
Earnings Growth Forecast: 22.6% p.a.
Hunan Fangsheng Pharmaceutical, a growth company with high insider ownership in China, has shown modest financial improvements. In the first quarter of 2024, net income rose to CNY 70.19 million from CNY 63.79 million year-over-year, with earnings per share also increasing slightly. Despite lower profit margins compared to the previous year and dividends not well covered by cash flows, the company is expected to see significant earnings growth over the next three years at a rate faster than the Chinese market average. However, its forecasted revenue growth does not meet high growth thresholds and return on equity is anticipated to be low.
- Delve into the full analysis future growth report here for a deeper understanding of Hunan Fangsheng Pharmaceutical.
- According our valuation report, there's an indication that Hunan Fangsheng Pharmaceutical's share price might be on the expensive side.
Xi'an Bright Laser TechnologiesLtd (SHSE:688333)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Xi'an Bright Laser Technologies Co., Ltd. specializes in metal additive manufacturing and repairing solutions in the People's Republic of China, with a market capitalization of CN¥13.35 billion.
Operations: The company generates revenue primarily through its specialized solutions in metal additive manufacturing and repairs.
Insider Ownership: 29.8%
Earnings Growth Forecast: 42.3% p.a.
Xi'an Bright Laser Technologies Co., Ltd. has experienced substantial growth, with earnings escalating by 105.5% over the past year and projected to grow at 42.33% annually. Despite this, the company's return on equity is expected to remain low at 12.4%. Revenue growth is robust, forecasted at 34% per year, outpacing the Chinese market average of 13.6%. However, shareholders have faced dilution over the past year. The firm recently reported a significant turnaround in its first quarter results for 2024, with net income reaching CNY 1.34 million from a net loss of CNY 28.49 million in the previous year.
- Click here to discover the nuances of Xi'an Bright Laser TechnologiesLtd with our detailed analytical future growth report.
- Our valuation report unveils the possibility Xi'an Bright Laser TechnologiesLtd's shares may be trading at a premium.
PharmaBlock Sciences (Nanjing) (SZSE:300725)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: PharmaBlock Sciences (Nanjing), Inc. specializes in offering chemistry products and services for pharmaceutical research, development, and commercial production, with a market capitalization of approximately CN¥5.45 billion.
Operations: PharmaBlock Sciences generates CN¥1.72 billion in revenue primarily from its drug research and development, and production-related business.
Insider Ownership: 25%
Earnings Growth Forecast: 25.7% p.a.
PharmaBlock Sciences (Nanjing) demonstrates a mixed financial landscape, with recent earnings showing a slight decline from CNY 57.76 million to CNY 49.49 million year-over-year, despite stable sales around CNY 377 million. The company's dividend policy remains consistent, offering CNY 3.10 per 10 shares annually, though the dividends are not well-covered by cash flows. Looking forward, PharmaBlock is expected to see earnings growth outpace the Chinese market average at an annual rate of approximately 25.7%, while revenue growth projections also exceed market expectations at about 16.1% annually. However, profit margins have contracted from last year's higher levels and return on equity forecasts remain modest for the near future.
- Unlock comprehensive insights into our analysis of PharmaBlock Sciences (Nanjing) stock in this growth report.
- Our expertly prepared valuation report PharmaBlock Sciences (Nanjing) implies its share price may be too high.
Taking Advantage
- Reveal the 367 hidden gems among our Fast Growing Chinese Companies With High Insider Ownership screener with a single click 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.
Curious About Other Options?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Hunan Fangsheng Pharmaceutical might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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About SHSE:603998
Hunan Fangsheng Pharmaceutical
Researches, develops, produces, and sells pharmaceutical products in China.
Adequate balance sheet average dividend payer.
