3 Chinese Stocks With High Insider Ownership And 41% Earnings Growth

As China's economy grapples with weak manufacturing data and mixed market performance, investors are increasingly looking for resilient opportunities amid the uncertainty. One key indicator of a promising stock is high insider ownership, which often aligns management's interests with those of shareholders, particularly in companies demonstrating robust earnings growth.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	27.9%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
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%
Eoptolink Technology (SZSE:300502)	26.7%	39.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 361 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

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

Teyi Pharmaceutical GroupLtd (SZSE:002728)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Teyi Pharmaceutical Group Co., Ltd. engages in the research, development, production, and sale of Chinese patent medicines, pharmaceutical preparations, raw materials, and products in China with a market cap of CN¥4.07 billion.

Operations: The company's revenue segments include Chinese patent medicines, pharmaceutical preparations, and raw materials within China.

Insider Ownership: 39.2%

Earnings Growth Forecast: 41.1% p.a.

Teyi Pharmaceutical Group Ltd. is forecast to grow its revenue by 23.1% per year, outpacing the Chinese market's average growth of 13.5%. Despite this, recent earnings reports show a significant decline in sales and net income compared to last year. The company has initiated a share repurchase program worth up to CNY 120 million, indicating confidence from insiders who hold substantial ownership stakes. However, profit margins have decreased from 25.9% to 12.3%, raising concerns about profitability sustainability amidst rapid growth projections.

• Navigate through the intricacies of Teyi Pharmaceutical GroupLtd with our comprehensive analyst estimates report here.
• Our expertly prepared valuation report Teyi Pharmaceutical GroupLtd implies its share price may be too high.

Dirui IndustrialLtd (SZSE:300396)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Dirui Industrial Co., Ltd. engages in the research, development, production, and sale of medical inspection products in China and has a market cap of CN¥4.63 billion.

Operations: Revenue segments for Dirui Industrial Co., Ltd. include CN¥1.70 billion from Medical Instruments and an adjustment of CN¥6.21 million.

Insider Ownership: 14.1%

Earnings Growth Forecast: 29.5% p.a.

Dirui Industrial Ltd. forecasts annual earnings growth of 29.48% and revenue growth of 28.3%, outpacing the Chinese market averages. Despite a low forecasted return on equity (12.6%) in three years, its price-to-earnings ratio (14.5x) suggests good value compared to the broader market (27.5x). Recent events include a CNY 5 cash dividend per 10 shares for 2023, approved during the May AGM, indicating strong insider confidence amidst substantial ownership stakes and no recent insider trading activity.

• Delve into the full analysis future growth report here for a deeper understanding of Dirui IndustrialLtd.
• Upon reviewing our latest valuation report, Dirui IndustrialLtd's share price might be too pessimistic.

Shenzhen Senior Technology Material (SZSE:300568)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) specializes in the production of high-performance materials for lithium-ion batteries, with a market cap of CN¥10.53 billion.

Operations: The company's revenue primarily comes from its Lithium-Ion Battery Separator New Energy Materials segment, which generated CN¥3.03 billion.

Insider Ownership: 12.8%

Earnings Growth Forecast: 33.6% p.a.

Shenzhen Senior Technology Material's earnings are forecast to grow 33.6% annually, outpacing the Chinese market. Its revenue is also expected to increase at 30.6% per year, significantly above market averages. Despite a lower profit margin this year (16.3%) compared to last (25.5%), it trades at a favorable price-to-earnings ratio (21x). Recent events include a CNY 2.20 cash dividend per 10 shares for 2023, reflecting strong insider confidence and substantial ownership stakes with no recent insider trading activity reported.

• Unlock comprehensive insights into our analysis of Shenzhen Senior Technology Material stock in this growth report.
• Our valuation report here indicates Shenzhen Senior Technology Material may be undervalued.

Key Takeaways

• Unlock our comprehensive list of 361 Fast Growing Chinese Companies With High Insider Ownership by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Ready To Venture Into Other Investment Styles?

• 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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