Stock Analysis

Top Chinese Growth Stocks With High Insider Ownership September 2024

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As Chinese stocks have faced recent challenges due to underwhelming corporate earnings and a subdued economic outlook, investors are increasingly looking for resilient opportunities within the market. In this environment, growth companies with high insider ownership can offer a compelling investment thesis, as they often demonstrate strong alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)18%28.7%
Ningbo Deye Technology Group (SHSE:605117)23.4%30.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Arctech Solar Holding (SHSE:688408)38.7%29.9%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)22%59.2%
Quick Intelligent EquipmentLtd (SHSE:603203)34.4%33.1%
Suzhou Sunmun Technology (SZSE:300522)36.5%67.5%
Sineng ElectricLtd (SZSE:300827)36.5%42.4%
UTour Group (SZSE:002707)23%29.9%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%

Click here to see the full list of 380 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Ficont Industry (Beijing) (SHSE:605305)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ficont Industry (Beijing) Co., Ltd. manufactures and supplies wind turbine tower internals and safety systems for wind turbine manufacturers in China and internationally, with a market cap of CN¥4.91 billion.

Operations: Revenue Segments (in millions of CN¥): Ficont Industry generates revenue from the manufacture and supply of wind turbine tower internals and safety systems for both domestic and international markets.

Insider Ownership: 39.1%

Earnings Growth Forecast: 27% p.a.

Ficont Industry (Beijing) Co., Ltd. reported strong earnings for the half year ended June 30, 2024, with sales increasing to CNY 570.25 million and net income rising to CNY 140.43 million compared to the previous year. The company is trading at a good value relative to peers and has significant insider ownership. Earnings are expected to grow at an annual rate of 27%, outpacing the Chinese market's growth forecast of 23.2%.

SHSE:605305 Earnings and Revenue Growth as at Sep 2024

Ginlong Technologies (SZSE:300763)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ginlong Technologies Co., Ltd. engages in the research, development, production, service, and sale of string inverters worldwide and has a market cap of CN¥22.85 billion.

Operations: The company generates revenue from the research, development, production, service, and sale of string inverters globally.

Insider Ownership: 38.2%

Earnings Growth Forecast: 34.7% p.a.

Ginlong Technologies, with substantial insider ownership, is forecasted to achieve significant annual earnings growth of 34.7% over the next three years, surpassing the Chinese market's growth rate. Despite this positive outlook, its recent earnings report showed a decline in net income to CNY 352.23 million from CNY 627.19 million a year ago and diluted EPS dropping to CNY 0.88 from CNY 1.6. Additionally, profit margins have decreased and shareholders experienced dilution in the past year.

SZSE:300763 Ownership Breakdown as at Sep 2024

Fujian Wanchen Biotechnology Group (SZSE:300972)

Simply Wall St Growth Rating: ★★★★★★

Overview: Fujian Wanchen Biotechnology Co., Ltd specializes in the R&D, cultivation, production, and sale of edible fungi in China with a market cap of CN¥5.78 billion.

Operations: The company's revenue segments include research and development, cultivation, production, and sale of edible fungi in China.

Insider Ownership: 14.9%

Earnings Growth Forecast: 85.3% p.a.

Fujian Wanchen Biotechnology Group, with significant insider ownership, is forecasted to achieve substantial revenue growth of 32.4% annually and become profitable within three years. Despite recent shareholder dilution and high share price volatility, the company reported a sharp increase in half-year sales to CNY 10.92 billion from CNY 2.22 billion a year ago, turning a net income of CNY 0.93 million from a prior loss, indicating strong growth potential relative to peers and industry benchmarks.

SZSE:300972 Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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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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