Stock Analysis

Unveiling High Insider Ownership Growth Companies On The Chinese Exchange

Published

As global markets navigate through a landscape marked by heightened U.S.-China trade tensions and mixed economic signals, the Chinese stock market presents unique opportunities, particularly in companies with high insider ownership. These firms often exhibit strong alignment between management and shareholder interests, potentially offering stability and confidence amidst broader market volatility. In the current environment where investor sentiment towards Chinese equities remains cautious due to economic uncertainties, companies with substantial insider stakes might be well-positioned to capitalize on long-term growth trajectories while maintaining strategic resilience.

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.

We'll examine a selection from our screener results.

COL GroupLtd (SZSE:300364)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: COL Group Co., Ltd. operates in the digital publishing sector in China, with a market capitalization of approximately CN¥14.85 billion.

Operations: The firm generates its revenue primarily from the digital publishing sector in China.

Insider Ownership: 12.4%

COL Group Ltd., a company in China with high insider ownership, has shown mixed financial performance recently. As of the first quarter of 2024, it reported a significant revenue drop to CNY 222.67 million from CNY 288.46 million year-over-year and an increased net loss of CNY 68.46 million, up from CNY 37.22 million. Despite these challenges, earnings are expected to grow by a substantial 39.8% annually over the next three years, outpacing the broader Chinese market's forecast growth rate of 22.2%. However, the company's share price has been highly volatile in recent months.

SZSE:300364 Ownership Breakdown as at Jul 2024

Jinlei Technology (SZSE:300443)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jinlei Technology Co., Ltd. focuses on developing, producing, and selling wind turbine spindles along with various castings and forgings both domestically in China and internationally, with a market capitalization of approximately CN¥5.16 billion.

Operations: The company generates revenue primarily from the development, production, and sale of wind turbine spindles as well as various castings and forgings across domestic and international markets.

Insider Ownership: 34%

Jinlei Technology, a Chinese growth company with high insider ownership, is trading at a value appealing relative to its peers and industry. While it lacks recent insider buying information, its earnings and revenue are both projected to grow significantly above market expectations at annual rates of 27.5% and 28.4%, respectively. However, its Return on Equity is expected to remain low at 9.8%. Recent activities include a share buyback program and consistent dividend payments, reflecting strong management confidence in the company's value.

SZSE:300443 Ownership Breakdown as at Jul 2024

Luoyang Xinqianglian Slewing Bearing (SZSE:300850)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Luoyang Xinqianglian Slewing Bearing Co., Ltd. specializes in the manufacturing of slewing bearings and has a market capitalization of approximately CN¥5.40 billion.

Operations: The company generates its revenue primarily from the production and sale of slewing bearings.

Insider Ownership: 36.4%

Luoyang Xinqianglian Slewing Bearing Co., Ltd., a Chinese company with high insider ownership, is poised for substantial growth with earnings expected to increase by 44.81% annually. Despite a recent net loss in Q1 2024 and revenue decline from the previous year, its price-to-earnings ratio remains competitive at 19.4x, below the market average of 28.1x. The firm also approved a modest dividend during its latest AGM, signaling confidence despite financial setbacks.

SZSE:300850 Earnings and Revenue Growth as at Jul 2024

Summing It All Up

Searching for a Fresh Perspective?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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