Stock Analysis

August 2024's Top Chinese Growth Stocks With High Insider Ownership

SHSE:688766
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As Chinese stocks experienced a retreat amid concerns over deflationary pressures, it becomes crucial to identify growth companies with high insider ownership that can potentially weather market volatility. In these uncertain times, firms where insiders hold significant stakes may offer added confidence to investors, as their leadership is likely highly motivated to drive long-term success.

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%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
Arctech Solar Holding (SHSE:688408)38.7%26.9%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Ningbo Deye Technology Group (SHSE:605117)23.4%29.2%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
Fujian Wanchen Biotechnology Group (SZSE:300972)14.9%82.1%
UTour Group (SZSE:002707)23%36.1%

Click here to see the full list of 365 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Wuxi Chipown Micro-electronics (SHSE:688508)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Wuxi Chipown Micro-electronics Limited focuses on the research, development, design, and supply of analog and mixed signal integrated circuits (ICs) in China with a market cap of CN¥4.36 billion.

Operations: Revenue from integrated circuits amounted to CN¥796.64 million.

Insider Ownership: 34.8%

Revenue Growth Forecast: 20.1% p.a.

Wuxi Chipown Micro-electronics exhibits strong growth potential with revenue expected to grow 20.1% annually, outpacing the Chinese market's 13.5% forecast. Earnings are projected to rise significantly at 43% per year over the next three years. Despite recent share price volatility and past shareholder dilution, insider ownership remains high, indicating confidence in the company's prospects. Recent buybacks totaling CNY 47.25 million further underscore management's commitment to enhancing shareholder value.

SHSE:688508 Ownership Breakdown as at Aug 2024
SHSE:688508 Ownership Breakdown as at Aug 2024

Puya Semiconductor (Shanghai) (SHSE:688766)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Puya Semiconductor (Shanghai) Co., Ltd. designs and sells non-volatile memory chips and derivative chips based on memory chips both in China and internationally, with a market cap of CN¥7.29 billion.

Operations: Revenue Segments (in millions of CN¥): The company generates revenue primarily from Integrated Circuit sales, amounting to CN¥1.33 billion.

Insider Ownership: 33.3%

Revenue Growth Forecast: 25.1% p.a.

Puya Semiconductor (Shanghai) is poised for substantial growth with its revenue forecasted to increase by 25.1% annually, surpassing the broader Chinese market's 13.5% growth rate. Earnings are expected to grow significantly at 52% per year, well above the market average of 22%. Despite recent share price volatility and one-off items affecting financial results, high insider ownership reflects strong internal confidence in future prospects.

SHSE:688766 Earnings and Revenue Growth as at Aug 2024
SHSE:688766 Earnings and Revenue Growth as at Aug 2024

China Railway Prefabricated Construction (SZSE:300374)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: China Railway Prefabricated Construction Co., Ltd. (ticker: SZSE:300374) operates in the construction industry, focusing on prefabricated building solutions, with a market cap of CN¥3.77 billion.

Operations: China Railway Prefabricated Construction Co., Ltd. (ticker: SZSE:300374) operates in the construction industry, focusing on prefabricated building solutions, with a market cap of CN¥3.77 billion. Revenue Segments (in millions of CN¥): null

Insider Ownership: 25.2%

Revenue Growth Forecast: 19.2% p.a.

China Railway Prefabricated Construction is expected to achieve profitability within the next 3 years, with earnings projected to grow at an impressive 149.89% annually. Although its revenue growth forecast of 19.2% per year is slightly below the 20% threshold, it still outpaces the broader Chinese market's expected growth of 13.5%. High insider ownership indicates strong internal confidence in the company's future performance, despite no significant insider trading activity in recent months.

SZSE:300374 Earnings and Revenue Growth as at Aug 2024
SZSE:300374 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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