Chinese Growth Companies With High Insider Ownership July 2024

As Chinese equities faced a downturn in July 2024, driven by unexpected rate cuts and economic uncertainties, investors are increasingly looking for resilient opportunities within the market. In this context, growth companies with high insider ownership often stand out due to their strong alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings 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%
Arctech Solar Holding (SHSE:688408)	38.7%	28.4%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 363 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Anhui Huaheng Biotechnology (SHSE:688639)

Simply Wall St Growth Rating: ★★★★★★

Overview: Anhui Huaheng Biotechnology Co., Ltd. develops, produces, and sells amino acids and other organic acids both in China and internationally, with a market cap of CN¥9.34 billion.

Operations: The company's revenue from the Bio Manufacturing Industry segment amounts to CN¥1.94 billion.

Insider Ownership: 31.5%

Earnings Growth Forecast: 26.5% p.a.

Anhui Huaheng Biotechnology is forecast to achieve a high Return on Equity of 27.5% in three years, with revenue growth expected at 29.5% per year, significantly outpacing the market's 13.6%. Earnings grew by 40.3% last year and are projected to rise by 26.51% annually, surpassing market expectations of 22.1%. Despite trading at good value and below fair value estimates, the company faces challenges with a high level of debt and unsustainable dividends from free cash flows.

• Click to explore a detailed breakdown of our findings in Anhui Huaheng Biotechnology's earnings growth report.
• The analysis detailed in our Anhui Huaheng Biotechnology valuation report hints at an deflated share price compared to its estimated value.

Qingdao Huicheng Environmental Technology Group (SZSE:300779)

Simply Wall St Growth Rating: ★★★★★★

Overview: Qingdao Huicheng Environmental Technology Group Co., Ltd. (SZSE:300779) operates in the environmental technology sector and has a market cap of CN¥8.18 billion.

Operations: Qingdao Huicheng Environmental Technology Group Co., Ltd. (SZSE:300779) operates in the environmental technology sector and has a market cap of CN¥8.18 billion. The company generates revenue from various segments, contributing millions of CN¥ to its overall financial performance.

Insider Ownership: 31.9%

Earnings Growth Forecast: 47.9% p.a.

Qingdao Huicheng Environmental Technology Group is poised for substantial growth, with earnings forecast to rise by 47.92% annually and revenue expected to grow at 30.9% per year, both outpacing the broader Chinese market. Despite recent shareholder dilution and high volatility in share price, the company’s strong insider ownership underscores confidence in its strategic direction. Recent private placements aim to raise CNY 850M for expansion, highlighting its aggressive growth strategy amidst robust financial performance last year.

• Take a closer look at Qingdao Huicheng Environmental Technology Group's potential here in our earnings growth report.
• The valuation report we've compiled suggests that Qingdao Huicheng Environmental Technology Group's current price could be inflated.

Zhejiang Cayi Vacuum Container (SZSE:301004)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Cayi Vacuum Container Co., Ltd. engages in the research, development, design, production, and sale of beverage and food containers of various materials in China and has a market cap of CN¥8.28 billion.

Operations: Zhejiang Cayi Vacuum Container Co., Ltd. generates revenue from the research, development, design, production, and sale of beverage and food containers made from various materials in China.

Insider Ownership: 16.8%

Earnings Growth Forecast: 20.7% p.a.

Zhejiang Cayi Vacuum Container is trading at 73.5% below its estimated fair value, suggesting potential for significant appreciation. The company’s earnings grew by 80.2% last year and are expected to grow 20.7% annually over the next three years, although this is slightly below the market average. Revenue forecasts of 20.5% per year outpace the broader Chinese market's growth rate, indicating strong future performance despite a highly volatile share price and an unstable dividend track record.

• Delve into the full analysis future growth report here for a deeper understanding of Zhejiang Cayi Vacuum Container.
• Insights from our recent valuation report point to the potential undervaluation of Zhejiang Cayi Vacuum Container shares in the market.

Key Takeaways

• Gain an insight into the universe of 363 Fast Growing Chinese Companies With High Insider Ownership by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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