Three High Growth Chinese Stocks With Significant Insider Ownership

As Chinese stocks face headwinds from underwhelming corporate earnings and a challenging economic environment, investors are increasingly looking for resilient opportunities in the market. One promising strategy is to focus on growth companies with significant insider ownership, as this alignment of interests often signals confidence in the company's long-term prospects and can be particularly reassuring during periods of economic uncertainty.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Suzhou TFC Optical Communication (SZSE:300394)	12.2%	32%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	18%	28.7%
Jiayou International LogisticsLtd (SHSE:603871)	22.9%	24.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)	13.9%	39.2%
Arctech Solar Holding (SHSE:688408)	38.7%	30.5%
Quick Intelligent EquipmentLtd (SHSE:603203)	34.4%	33.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	67.5%
Sineng ElectricLtd (SZSE:300827)	36.5%	41.7%
UTour Group (SZSE:002707)	23%	29.9%
BIWIN Storage Technology (SHSE:688525)	18.8%	116.8%

Click here to see the full list of 382 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

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

Ningxia Baofeng Energy Group (SHSE:600989)

Simply Wall St Growth Rating: ★★★★★★

Overview: Ningxia Baofeng Energy Group Co., Ltd. engages in the production, processing, and sale of coal mining, washing, coking, coal tar, crude benzene, C4 deep-processed products, methanol, and olefin products with a market cap of CN¥113.59 billion.

Operations: The company's revenue segments are as follows: Coking Products: CN¥14.15 billion, Olefin Products: CN¥19.16 billion, and Fine Chemical Products: CN¥4.08 billion.

Insider Ownership: 35%

Ningxia Baofeng Energy Group, trading at 46.3% below its fair value estimate, is expected to see significant earnings growth of 31.86% annually and revenue growth of 25.4% per year, outpacing the Chinese market average. Despite high debt levels and a dividend not well covered by free cash flows, the company's recent half-year results showed strong performance with sales rising to CNY 16.90 billion and net income reaching CNY 3.30 billion from a year ago.

• Click to explore a detailed breakdown of our findings in Ningxia Baofeng Energy Group's earnings growth report.
• Our valuation report unveils the possibility Ningxia Baofeng Energy Group's shares may be trading at a discount.

Jiangsu Cnano Technology (SHSE:688116)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangsu Cnano Technology Co., Ltd. researches, develops, produces, and sells carbon nanotube materials and related products in China with a market cap of CN¥7.16 billion.

Operations: Jiangsu Cnano Technology generates revenue from the research, development, production, and sale of carbon nanotube materials and related products in China.

Insider Ownership: 18.4%

Jiangsu Cnano Technology, with substantial insider ownership, is forecast to achieve robust revenue growth of 32.6% annually and earnings growth of 35.1% per year, surpassing the Chinese market averages. Despite a dividend yield of 1.44% not being well covered by free cash flows, the company trades at a favorable P/E ratio of 22.2x compared to the market's 26.8x. Recent half-year results show sales rising slightly to CNY 646.61 million and net income increasing to CNY 115.51 million from the previous year.

• Get an in-depth perspective on Jiangsu Cnano Technology's performance by reading our analyst estimates report here.
• Insights from our recent valuation report point to the potential undervaluation of Jiangsu Cnano Technology shares in the market.

Guangdong Create Century Intelligent Equipment Group (SZSE:300083)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Create Century Intelligent Equipment Group Corporation Limited, with a market cap of CN¥10.19 billion, engages in the research, development, production, and sale of high-end intelligent equipment in China.

Operations: The company generates revenue from the research, development, production, and sale of high-end intelligent equipment within China.

Insider Ownership: 18.1%

Guangdong Create Century Intelligent Equipment Group, with significant insider ownership, is expected to see earnings grow at 41.9% per year and revenue at 23.1% annually, outpacing the Chinese market. However, recent half-year results show a slight decline in net income to CNY 158.23 million from CNY 205.49 million the previous year, despite stable sales and revenue figures around CNY 2 billion. Profit margins have also decreased from last year’s levels.

• Navigate through the intricacies of Guangdong Create Century Intelligent Equipment Group with our comprehensive analyst estimates report here.
• Insights from our recent valuation report point to the potential overvaluation of Guangdong Create Century Intelligent Equipment Group shares in the market.

Next Steps

• Embark on your investment journey to our 382 Fast Growing Chinese Companies With High Insider Ownership selection here.
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Searching for a Fresh Perspective?

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• 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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