Stock Analysis

3 Chinese Growth Stocks With High Insider Ownership Expecting Up To 105% Earnings Growth

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The Chinese stock market recently experienced a week of declines, reflecting caution among investors ahead of the Federal Reserve Chair's speech at Jackson Hole. Despite this, growth stocks with high insider ownership remain attractive due to their potential for substantial earnings increases and alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)18%28.7%
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)24.3%27.7%
Arctech Solar Holding (SHSE:688408)38.7%26.9%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
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%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%

Click here to see the full list of 375 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Arctech Solar Holding (SHSE:688408)

Simply Wall St Growth Rating: ★★★★★★

Overview: Arctech Solar Holding Co., Ltd. manufactures and supplies solar trackers, fixed-tilt structures, and building-integrated photovoltaics (BIPV) solutions for utility-scale and commercial solar projects worldwide, with a market cap of CN¥11.29 billion.

Operations: Arctech Solar Holding Co., Ltd. generates revenue from the production and supply of solar trackers, fixed-tilt structures, and building-integrated photovoltaics (BIPV) solutions for large-scale utility and commercial solar projects globally.

Insider Ownership: 38.7%

Earnings Growth Forecast: 26.9% p.a.

Arctech Solar Holding, with high insider ownership, has demonstrated significant growth potential. Its earnings grew by 399.6% over the past year and are forecast to grow 26.93% annually, outpacing the Chinese market's average. Revenue is expected to increase by 22.1% per year, also surpassing market expectations. Despite trading at 67% below its estimated fair value and showing good relative value compared to peers, its dividend of 1.05% isn't well covered by free cash flows.

SHSE:688408 Ownership Breakdown as at Aug 2024

Suning.com (SZSE:002024)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Suning.com Co., Ltd. operates in the retail sector in China and has a market cap of approximately CN¥11.73 billion.

Operations: Suning.com generates revenue primarily through its retail operations in China, with significant contributions from various segments.

Insider Ownership: 20.2%

Earnings Growth Forecast: 105.4% p.a.

Suning.com demonstrates significant growth potential with high insider ownership. The company is expected to achieve profitability within the next three years and has a revenue growth forecast of 15% per year, surpassing the Chinese market average. Recent buyback activities, including a CNY 100 million share repurchase program, aim to maintain shareholder value. Trading at 92.6% below its estimated fair value and showing good relative value compared to peers, Suning.com remains an attractive growth prospect despite low forecasted return on equity (5.6%).

SZSE:002024 Ownership Breakdown as at Aug 2024

Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)

Simply Wall St Growth Rating: ★★★★★★

Overview: Ningbo Sunrise Elc Technology Co., Ltd. manufactures and sells precision components, with a market cap of CN¥5.21 billion.

Operations: The company's revenue segments include the manufacture and sale of precision components.

Insider Ownership: 24.3%

Earnings Growth Forecast: 27.7% p.a.

Ningbo Sunrise Elc Technology Ltd exhibits strong growth potential with high insider ownership. The company reported half-year sales of CNY 1 billion, up from CNY 967.71 million, and net income of CNY 147.62 million, up from CNY 115.67 million year-over-year. Earnings are forecast to grow significantly at 27.7% annually, outpacing the Chinese market's average growth rate. Despite a dividend yield not fully covered by free cash flows, it trades at good value compared to peers and industry standards.

SZSE:002937 Ownership Breakdown as at Aug 2024

Key Takeaways

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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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