3 Chinese Growth Companies With Insider Ownership Expecting Up To 170% Earnings Growth

In recent weeks, Chinese equities have shown resilience despite weaker-than-expected economic activity, with indices like the Shanghai Composite and CSI 300 posting modest gains. This environment presents an intriguing backdrop for growth companies with high insider ownership, which can often signal strong confidence from those closest to the business. Identifying such stocks requires looking at firms that not only show robust earnings potential but also have significant insider stakes, suggesting alignment between management and shareholder interests.

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%
Arctech Solar Holding (SHSE:688408)	38.7%	26.9%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	85.3%
Sineng ElectricLtd (SZSE:300827)	36.5%	40.1%
Jilin University Zhengyuan Information Technologies (SZSE:003029)	12.6%	82.2%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 372 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Chifeng Jilong Gold MiningLtd (SHSE:600988)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Chifeng Jilong Gold Mining Co., Ltd. operates as a gold and non-ferrous metal mining company with a market cap of CN¥30.35 billion.

Operations: The company generates revenue primarily from gold and non-ferrous metal mining operations.

Insider Ownership: 16.1%

Earnings Growth Forecast: 25.2% p.a.

Chifeng Jilong Gold Mining Ltd. demonstrates notable growth potential with forecasted annual revenue and earnings growth of 15.4% and 25.2%, respectively, outpacing the broader Chinese market averages. Despite trading at a significant discount to its estimated fair value, its return on equity is projected to remain modest at 18.9%. Recent news highlights the completion of a share buyback program valued at CNY 220 million, reflecting strong insider confidence in the company's future prospects.

• Dive into the specifics of Chifeng Jilong Gold MiningLtd here with our thorough growth forecast report.
• Our valuation report here indicates Chifeng Jilong Gold MiningLtd may be undervalued.

Guangzhou Fangbang ElectronicsLtd (SHSE:688020)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangzhou Fangbang Electronics Co., Ltd focuses on the research, development, production, sale, and service of electronic materials in China and has a market cap of CN¥2.68 billion.

Operations: The company generates revenue from the research, development, production, sale, and service of electronic materials within China.

Insider Ownership: 28.2%

Earnings Growth Forecast: 170% p.a.

Guangzhou Fangbang Electronics Ltd. is poised for significant growth, with revenue expected to increase by 58.4% per year, outpacing the Chinese market's average growth rate of 13.4%. Earnings are forecasted to grow by 170.03% annually, and the company is anticipated to become profitable within three years, surpassing average market expectations. However, its share price has been highly volatile over the past three months and lacks recent insider trading activity.

• Take a closer look at Guangzhou Fangbang ElectronicsLtd's potential here in our earnings growth report.
• Upon reviewing our latest valuation report, Guangzhou Fangbang ElectronicsLtd's share price might be too optimistic.

Talkweb Information SystemLtd (SZSE:002261)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Talkweb Information System Co., Ltd. operates in China, offering education services and mobile games, with a market cap of CN¥12.87 billion.

Operations: The company's revenue segments include education services and mobile games in China.

Insider Ownership: 20.7%

Earnings Growth Forecast: 58.6% p.a.

Talkweb Information System Ltd. has reported a significant increase in sales to CNY 1.73 billion for the first half of 2024, although net income dropped sharply to CNY 3.34 million from CNY 57.81 million a year ago. Despite this, the company's revenue is forecasted to grow at a rate faster than the Chinese market average, and its earnings are expected to rise significantly over the next three years, indicating strong growth potential amidst high insider ownership.

• Get an in-depth perspective on Talkweb Information SystemLtd's performance by reading our analyst estimates report here.
• Our expertly prepared valuation report Talkweb Information SystemLtd implies its share price may be too high.

Make It Happen

• Explore the 372 names from our Fast Growing Chinese Companies With High Insider Ownership screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Contemplating Other Strategies?

• 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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