Stock Analysis

High Insider Ownership Growth Companies On Chinese Exchange July 2024

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Amid a backdrop of fluctuating global markets and heightened trade tensions, Chinese equities have shown resilience, with notable gains in major indices. This context sets an intriguing stage for exploring growth companies with high insider ownership on Chinese exchanges, as these firms often benefit from deeply invested leadership during uncertain times.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
Anhui Huaheng Biotechnology (SHSE:688639)31.5%26.5%
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)24.3%27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)19%27.9%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)24%22.3%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Arctech Solar Holding (SHSE:688408)38.7%25.4%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
UTour Group (SZSE:002707)23%33.1%

Click here to see the full list of 359 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Beijing Tieke Shougang Rail Way-Tech (SHSE:688569)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beijing Tieke Shougang Rail Way-Tech Co., Ltd. is a company specializing in railway technology solutions, with a market capitalization of approximately CN¥4.24 billion.

Operations: The company generates its revenue primarily from industrial manufacturing, totaling CN¥1.40 billion.

Insider Ownership: 12%

Earnings Growth Forecast: 39.7% p.a.

Beijing Tieke Shougang Rail Way-Tech has demonstrated robust growth prospects with expected annual revenue and earnings growth surpassing the Chinese market averages at 22.1% and 39.7% respectively. Despite a recent decline in quarterly sales and net income, from CNY 572.58 million to CNY 333.03 million, and from CNY 138.77 million to CNY 54.96 million, the company trades at a favorable price-to-earnings ratio of 20.5x compared to its peers. However, its dividend stability is questionable, and forecasted Return on Equity is considered low at 17%.

SHSE:688569 Ownership Breakdown as at Jul 2024

APT Medical (SHSE:688617)

Simply Wall St Growth Rating: ★★★★★★

Overview: APT Medical Inc. focuses on the research, development, production, and sale of electrophysiology and interventional medical devices within China, boasting a market capitalization of approximately CN¥30.98 billion.

Operations: The company generates its revenue primarily from the sale of medical devices, totaling CN¥1.76 billion.

Insider Ownership: 21.9%

Earnings Growth Forecast: 27.7% p.a.

APT Medical is poised for significant growth, with earnings forecasted to increase by 27.72% annually. This growth rate outpaces the broader Chinese market's average. The company recently reported a strong quarterly performance, with revenue and net income rising to CNY 455.33 million and CNY 140.14 million respectively. High insider ownership aligns management interests with shareholders, though no recent insider transactions were reported. Upcoming leadership changes indicate strategic adjustments, potentially influencing future governance and performance directions.

SHSE:688617 Ownership Breakdown as at Jul 2024

Hichain LogisticsLtd (SZSE:300873)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hichain Logistics Co., Ltd. operates as an integrated logistics service provider both in China and internationally, with a market capitalization of approximately CN¥3.40 billion.

Operations: The company generates its revenue through integrated logistics services across both domestic and international markets.

Insider Ownership: 35.8%

Earnings Growth Forecast: 21.9% p.a.

Hichain Logistics Co., Ltd. has demonstrated a robust pattern of growth, with revenue expected to expand by 23.6% annually, outpacing the Chinese market forecast of 13.7%. Despite trading at 54.6% below its estimated fair value and having an unstable dividend track record, the company's earnings are projected to grow by 21.95% per year. Recent activities include a dividend increase and share buyback, signaling positive shareholder returns amidst slight declines in quarterly sales and net income.

SZSE:300873 Earnings and Revenue Growth as at Jul 2024

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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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