Stock Analysis

3 Chinese Growth Stocks With Up To 38% Insider Ownership

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As the Chinese market navigates through mixed economic signals and a backdrop of global uncertainty, investors are increasingly focused on identifying resilient growth opportunities. One key indicator of potential long-term success is high insider ownership, which often aligns management's interests with those of shareholders and can signal confidence in a company's future prospects.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)24.3%27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)19%27.9%
Arctech Solar Holding (SHSE:688408)38.7%28.4%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Xi'an Sinofuse Electric (SZSE:301031)36.8%43.1%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Eoptolink Technology (SZSE:300502)26.7%39.4%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
UTour Group (SZSE:002707)23%36.1%

Click here to see the full list of 358 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Guangdong Create Century Intelligent Equipment Group (SZSE:300083)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Create Century Intelligent Equipment Group Corporation Limited, with a market cap of CN¥9.27 billion, specializes in the research, development, production, and sale of high-end intelligent equipment in China.

Operations: The company's revenue segments include the research, development, production, and sale of high-end intelligent equipment in China.

Insider Ownership: 18.6%

Guangdong Create Century Intelligent Equipment Group's revenue is forecast to grow 25.8% annually, significantly outpacing the Chinese market's 13.6%. Despite this, profit margins have declined from 6.6% to 4.1%, and the share price has been highly volatile over the past three months. The company's earnings are expected to grow at a robust rate of 41.2% per year, although its Return on Equity is projected to be relatively low at 10.7% in three years' time.

SZSE:300083 Earnings and Revenue Growth as at Aug 2024

PharmaBlock Sciences (Nanjing) (SZSE:300725)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PharmaBlock Sciences (Nanjing), Inc. offers chemistry products and services for pharmaceutical research, development, and commercial production, with a market cap of CN¥6.09 billion.

Operations: PharmaBlock Sciences (Nanjing) generates CN¥1.72 billion from its drug research, development, and production-related business.

Insider Ownership: 25%

PharmaBlock Sciences (Nanjing) is poised for significant earnings growth, forecasted at 25.7% per year, outpacing the Chinese market's 22.2%. Revenue is expected to grow at 16.1% annually, also ahead of the market's 13.6%. Despite a recent decline in profit margins from 18.3% to 11%, the company has high insider ownership and recently increased its dividend payout to CNY 3.10 per share for 2023, payable on June 14, 2024.

SZSE:300725 Ownership Breakdown as at Aug 2024

Ginlong Technologies (SZSE:300763)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ginlong Technologies Co., Ltd. is involved in the global research, development, production, service, and sale of string inverters with a market cap of CN¥25.85 billion.

Operations: Ginlong Technologies' revenue segments include CN¥2.50 billion from domestic sales and CN¥1.70 billion from international sales, totaling CN¥4.20 billion.

Insider Ownership: 38.1%

Ginlong Technologies is forecasted to achieve significant earnings growth, estimated at 25.72% annually, surpassing the Chinese market's 22.2%. Revenue is expected to grow at 18.2% per year, outpacing the market's 13.6%. Despite a reduction in profit margins from 18.9% to 8.1%, the company maintains high insider ownership and has not diluted shareholders over the past year, although its share price has been highly volatile recently.

SZSE:300763 Earnings and Revenue Growth as at Aug 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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