Stock Analysis

Three Chinese Exchange Growth Companies With Up To 24% Insider Ownership

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As global markets navigate through fluctuating economic signals, China's stock market has shown resilience, buoyed by strong export data despite internal deflationary pressures. In such a market environment, growth companies with high insider ownership can be particularly compelling, as significant insider stakes often align management’s interests with those of shareholders, fostering long-term value creation.

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%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)24%22.3%
Anhui Huaheng Biotechnology (SHSE:688639)31.4%28.4%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Arctech Solar Holding (SHSE:688408)38.7%25.8%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
UTour Group (SZSE:002707)23%33.1%

Click here to see the full list of 367 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Ming Yang Smart Energy Group (SHSE:601615)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ming Yang Smart Energy Group Limited specializes in the research, development, design, manufacture, sale, maintenance, and operation of energy equipment and wind turbines in China, with a market capitalization of approximately CN¥19.96 billion.

Operations: The company generates revenue primarily through the design, manufacture, and sale of energy equipment and wind turbines.

Insider Ownership: 15.7%

Ming Yang Smart Energy Group, a Chinese growth company with significant insider ownership, recently settled a series of litigations favorably, potentially enhancing future cooperation and reducing costs. Despite being removed from the SSE 180 Index, the firm maintains robust earnings growth forecasts (38.29% per year) exceeding market expectations. However, its profit margins have declined to 3% from last year's 6.9%, and its dividend coverage by free cash flows is weak.

SHSE:601615 Earnings and Revenue Growth as at Jul 2024

Ningbo Deye Technology Group (SHSE:605117)

Simply Wall St Growth Rating: ★★★★★★

Overview: Ningbo Deye Technology Group Co., Ltd. specializes in manufacturing and selling heat exchangers, inverters, and dehumidifiers across various global markets including China, the UK, the US, Germany, and India, with a market capitalization of approximately CN¥54.17 billion.

Operations: The company generates its revenue from the production and sales of heat exchangers, inverters, and dehumidifiers across key markets such as China, the UK, the US, Germany, and India.

Insider Ownership: 23.4%

Ningbo Deye Technology Group, a Chinese growth company with high insider ownership, recently conducted a significant private placement, raising nearly CNY 2 billion at CNY 55.56 per share. Despite experiencing shareholder dilution and a decrease in net income from CNY 588.82 million to CNY 432.91 million in Q1 2024, the company's revenue and earnings growth are forecasted to outpace the market significantly over the next three years. However, concerns remain about its dividend sustainability due to insufficient free cash flow coverage.

SHSE:605117 Ownership Breakdown as at Jul 2024

Shenzhen Hello Tech Energy (SZSE:301327)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Hello Tech Energy Co., Ltd. specializes in the research, development, manufacturing, and sales of portable power products in China, with a market capitalization of approximately CN¥7.63 billion.

Operations: The company generates its revenue primarily through the research, development, manufacturing, and sales of portable power products.

Insider Ownership: 24.2%

Shenzhen Hello Tech Energy, a Chinese company poised for growth with significant insider ownership, is forecasted to turn profitable within three years. Its revenue growth at 23.5% annually is expected to surpass the market's 13.7%. However, its projected return on equity remains low at 3.9%. Recent activities include a share buyback completion and corporate governance enhancements through bylaw amendments, indicating active management engagement and strategic financial maneuvers to strengthen its market position.

SZSE:301327 Earnings and Revenue Growth as at Jul 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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