Stock Analysis

Top Chinese Growth Companies With High Insider Ownership In September 2024

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In September 2024, Chinese stocks have faced some turbulence as weak inflation data raised concerns about economic stability. Despite these challenges, the market continues to present opportunities for growth companies with high insider ownership, which can be a strong indicator of confidence in a company's future performance. Investors often look for stocks where insiders hold significant shares because it suggests alignment between management and shareholder interests. In this article, we explore three top Chinese growth companies that exhibit high insider ownership and show potential resilience amid current market conditions.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)18%28.7%
Jiayou International LogisticsLtd (SHSE:603871)22.6%24.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Arctech Solar Holding (SHSE:688408)38.6%29.9%
Quick Intelligent EquipmentLtd (SHSE:603203)34.4%33.1%
UTour Group (SZSE:002707)23%25.2%
Suzhou Sunmun Technology (SZSE:300522)36.5%67.5%
Sineng ElectricLtd (SZSE:300827)36.5%41.7%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%
Offcn Education Technology (SZSE:002607)25.1%75.7%

Click here to see the full list of 373 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Yangtze Optical Electronic (SHSE:688143)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Yangtze Optical Electronic Co., Ltd. focuses on the R&D, production, and sale of special optical fibers and cables, photoelectric systems, optical devices, new materials, high-end equipment, and optoelectronic systems in China with a market cap of CN¥2.06 billion.

Operations: The company's revenue segments include special optical fibers and cables, photoelectric systems, optical devices, new materials, high-end equipment, and optoelectronic systems in China.

Insider Ownership: 27.2%

Earnings Growth Forecast: 63.8% p.a.

Yangtze Optical Electronic Co., Ltd. demonstrates strong growth potential with earnings forecasted to grow 63.84% annually, significantly outpacing the Chinese market's 23.1%. Recent earnings show a rise in sales to CNY 136.83 million and net income of CNY 15.18 million for H1 2024, indicating steady performance. The company has initiated a share repurchase program worth CNY 40 million, signaling confidence in its future prospects despite recent share price volatility and lower profit margins compared to last year.

SHSE:688143 Ownership Breakdown as at Sep 2024

Talkweb Information SystemLtd (SZSE:002261)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Talkweb Information System Co., Ltd. operates in China, offering education services and mobile games, with a market cap of CN¥15.38 billion.

Operations: Talkweb Information System Co., Ltd. generates revenue from Information Technology Services and Software (CN¥1.62 billion) and Computer, Communications, and Other Electronic Equipment Manufacturing (CN¥2.19 billion).

Insider Ownership: 20.7%

Earnings Growth Forecast: 67.6% p.a.

Talkweb Information System Ltd. shows potential as a growth company with high insider ownership in China, despite recent challenges. For H1 2024, sales increased to CNY 1.73 billion from CNY 1.07 billion year-over-year, but net income dropped to CNY 3.34 million from CNY 57.81 million due to higher costs or other factors impacting profitability. Forecasts indicate revenue growth of 17.2% annually and earnings growth of 67.59% per year, outpacing the market average despite recent share price volatility and low return on equity projections at 5.5%.

SZSE:002261 Earnings and Revenue Growth as at Sep 2024

Aishida (SZSE:002403)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Aishida Co., Ltd is involved in the research, development, manufacture, and sale of cookware and kitchen electric appliances globally, with a market cap of CN¥2.21 billion.

Operations: The company's revenue segments include CN¥2.58 billion from its industrial operations, after segment adjustments.

Insider Ownership: 22%

Earnings Growth Forecast: 163.7% p.a.

Aishida Co., Ltd. demonstrates potential within the realm of growth companies with high insider ownership in China. Despite a net loss of CNY 3.56 million for H1 2024, revenue increased to CNY 1.29 billion from CNY 1.16 billion year-over-year, indicating strong top-line growth. The company is forecasted to grow earnings by 163.67% annually and become profitable within three years, outperforming market averages despite recent share price volatility and debt coverage concerns by operating cash flow.

SZSE:002403 Earnings and Revenue Growth as at Sep 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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