Stock Analysis

Chinese Growth Stocks With High Insider Ownership For Strong Returns

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As Chinese equities show mixed performance amid weak manufacturing data, investors are increasingly looking for resilient opportunities in the market. In this context, growth companies with high insider ownership can offer a compelling investment case due to their potential alignment of interests and long-term commitment from key stakeholders.

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%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)22%54.9%
Arctech Solar Holding (SHSE:688408)38.7%28.4%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
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%
UTour Group (SZSE:002707)23%36.1%

Click here to see the full list of 358 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Changzhou Tenglong AutoPartsCo.Ltd (SHSE:603158)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Changzhou Tenglong AutoPartsCo.,Ltd. researches, develops, manufactures, and sells auto parts in China and internationally with a market cap of CN¥3.76 billion.

Operations: Changzhou Tenglong AutoPartsCo.,Ltd. generates revenue through the research, development, manufacturing, and sale of auto parts both domestically in China and internationally.

Insider Ownership: 16.5%

Revenue Growth Forecast: 25% p.a.

Changzhou Tenglong AutoParts Co. Ltd. stands out with high insider ownership and strong growth prospects. Earnings are forecast to grow 25.67% annually, outpacing the CN market's 22.2%. Revenue is expected to increase by 25% per year, surpassing the market's 13.6%. Despite a low forecasted return on equity (14.5%) in three years, the company trades at a favorable price-to-earnings ratio of 17.6x compared to the CN market's 28x and has seen significant earnings growth of 62.2% over the past year.

SHSE:603158 Earnings and Revenue Growth as at Aug 2024

Runben Biotechnology (SHSE:603193)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Runben Biotechnology Co., Ltd. specializes in the research, production, and sale of mosquito repellent products, baby care products, and essential oil products, with a market cap of CN¥7.34 billion.

Operations: The company generates revenue primarily from personal products, amounting to CN¥1.05 billion.

Insider Ownership: 33.1%

Revenue Growth Forecast: 25.5% p.a.

Runben Biotechnology exhibits strong growth potential with high insider ownership. The company's earnings grew by 69.4% over the past year and are forecast to increase by 23.52% annually, outpacing the CN market's 22.2%. Revenue is expected to grow at a robust rate of 25.5% per year, faster than the market's 13.6%. Despite trading at an 8.4% discount to its estimated fair value, it has an unstable dividend track record and a low forecasted return on equity of 15.8%.

SHSE:603193 Ownership Breakdown as at Aug 2024

Guobang Pharma (SHSE:605507)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guobang Pharma Ltd. focuses on the research, development, production, and sale of pharmaceutical and veterinary products with a market cap of CN¥9.67 billion.

Operations: Revenue Segments (in millions of CN¥): Pharmaceutical products: 3,500.00 Veterinary products: 2,200.00 Revenue from pharmaceutical products totals CN¥3.50 billion and from veterinary products amounts to CN¥2.20 billion.

Insider Ownership: 12.7%

Revenue Growth Forecast: 13.9% p.a.

Guobang Pharma demonstrates solid growth potential with significant insider ownership. Its earnings are forecast to grow at 22.51% per year, surpassing the CN market's 22.2%, while revenue is expected to increase by 13.9% annually, slightly ahead of the market's 13.6%. The company trades at a favorable price-to-earnings ratio of 15.7x compared to the market average of 28x but has a low projected return on equity of 11.8%.

SHSE:605507 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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