As Chinese stocks face headwinds from weak inflation data and economic concerns, investors are increasingly looking for resilient growth companies with strong insider ownership. High insider ownership can be a positive indicator, suggesting that company executives are confident in the long-term prospects of their business, aligning their interests with those of shareholders.
Top 10 Growth Companies With High Insider Ownership In China
| Name | Insider Ownership | Earnings 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% |
| Suzhou Sunmun Technology (SZSE:300522) | 36.5% | 67.5% |
| Sineng ElectricLtd (SZSE:300827) | 36.5% | 41.7% |
| UTour Group (SZSE:002707) | 23% | 25.2% |
| BIWIN Storage Technology (SHSE:688525) | 18.8% | 116.8% |
| Offcn Education Technology (SZSE:002607) | 25.1% | 75.7% |
Underneath we present a selection of stocks filtered out by our screen.
Shanghai Milkground Food Tech (SHSE:600882)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Shanghai Milkground Food Tech Co., Ltd manufactures and sells cheese and liquid milk products to consumers and industrial clients in China, with a market cap of CN¥6.22 billion.
Operations: Shanghai Milkground Food Tech Co., Ltd generates revenue primarily from cheese and liquid milk products sold to both consumers and industrial clients in China.
Insider Ownership: 16.5%
Shanghai Milkground Food Tech has demonstrated significant growth potential with earnings rising by 226.8% over the past year and a forecasted annual profit growth of 28.42%. Despite a recent dip in sales to CNY 1.92 billion, net income increased to CNY 76.78 million, reflecting improved profitability. The stock trades at 31.3% below its estimated fair value, and analysts expect the price to rise by 26.8%, highlighting strong market confidence despite low future Return on Equity forecasts (4.6%).
- Unlock comprehensive insights into our analysis of Shanghai Milkground Food Tech stock in this growth report.
- According our valuation report, there's an indication that Shanghai Milkground Food Tech's share price might be on the cheaper side.
Shanghai Action Education TechnologyLTD (SHSE:605098)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Shanghai Action Education Technology LTD (ticker: SHSE:605098) operates in the education technology sector and has a market cap of CN¥3.78 billion.
Operations: Shanghai Action Education Technology LTD (ticker: SHSE:605098) generates revenue primarily from its education technology services, with a market cap of CN¥3.78 billion.
Insider Ownership: 33.4%
Shanghai Action Education Technology has shown robust growth, with half-year revenue rising to CNY 389.43 million from CNY 288.14 million last year and net income increasing to CNY 136.19 million from CNY 105.42 million. The company is trading at a significant discount to its estimated fair value, and earnings are expected to grow by over 20% annually for the next three years, despite high share price volatility and a dividend not well covered by earnings.
- Click here and access our complete growth analysis report to understand the dynamics of Shanghai Action Education TechnologyLTD.
- Our valuation report unveils the possibility Shanghai Action Education TechnologyLTD's shares may be trading at a discount.
Venustech Group (SZSE:002439)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Venustech Group Inc. offers network security products, trusted security management platforms, and specialized security services and solutions globally, with a market cap of CN¥15.64 billion.
Operations: Venustech Group Inc. generates revenue of CN¥4.53 billion from its Information Network Security segment.
Insider Ownership: 22.4%
Venustech Group's earnings are forecast to grow significantly at 28.88% annually, outpacing the CN market average. Despite this, the company reported a net loss of CNY 182.25 million for H1 2024, contrasting with a net income of CNY 184.84 million last year. Revenue growth remains steady but below the 20% mark, and profit margins have declined significantly from last year. The stock trades well below its estimated fair value but has seen shareholder dilution recently.
- Click to explore a detailed breakdown of our findings in Venustech Group's earnings growth report.
- In light of our recent valuation report, it seems possible that Venustech Group is trading behind its estimated value.
Taking Advantage
- Dive into all 385 of the Fast Growing Chinese Companies With High Insider Ownership we have identified here.
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Ready For A Different Approach?
- 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.
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About SHSE:600882
Shanghai Milkground Food Tech
Engages in the manufacture and sale of cheese and liquid milk products to consumers and industrial clients in China.
Flawless balance sheet with solid track record.
