Stock Analysis

Chinese Growth Companies With High Insider Ownership In October 2024

SZSE:300715
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In October 2024, Chinese equities experienced a downturn as optimism about Beijing's stimulus measures began to wane, with the Shanghai Composite Index and CSI 300 both posting significant losses. Despite this challenging environment, growth companies with high insider ownership can offer unique opportunities as they often reflect strong confidence from those who know the business best.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)17.9%28.7%
Jiayou International LogisticsLtd (SHSE:603871)20.6%24.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
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)22.8%28.7%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%
Offcn Education Technology (SZSE:002607)25.1%75.7%

Click here to see the full list of 381 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Asia Cuanon Technology (Shanghai)Ltd (SHSE:603378)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Asia Cuanon Technology (Shanghai) Ltd, with a market cap of CN¥3.16 billion, operates in the construction materials industry focusing on environmentally friendly insulation and building solutions.

Operations: Asia Cuanon Technology (Shanghai) Ltd's revenue segments are not detailed in the provided text.

Insider Ownership: 15.4%

Earnings Growth Forecast: 64.8% p.a.

Asia Cuanon Technology (Shanghai) Ltd. demonstrates a mixed outlook with high insider ownership but faces challenges such as declining revenue and profit margins, reporting a net loss of CNY 19.13 million for the first half of 2024. Despite this, earnings are forecast to grow significantly at 64.82% annually, outpacing the Chinese market's growth rate. However, its return on equity is expected to remain low at 10.5%, and the dividend is not well covered by free cash flows.

SHSE:603378 Earnings and Revenue Growth as at Oct 2024
SHSE:603378 Earnings and Revenue Growth as at Oct 2024

Xianheng International Science&Technology (SHSE:605056)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Xianheng International Science&Technology Co., Ltd. operates in the science and technology sector, with a market cap of approximately CN¥5.12 billion.

Operations: Xianheng International Science&Technology Co., Ltd. does not have specified revenue segments in the provided text.

Insider Ownership: 23.1%

Earnings Growth Forecast: 40.7% p.a.

Xianheng International Science&Technology shows strong growth potential with forecasted earnings growth of 40.69% annually, surpassing the Chinese market's average. Despite a decline in profit margins from last year, recent revenue and net income increases reflect positive momentum. The company completed a share buyback worth CNY 51.02 million, enhancing shareholder value. However, its return on equity is expected to be modest at 16.8%, and the dividend track record remains unstable amidst large one-off items affecting earnings quality.

SHSE:605056 Ownership Breakdown as at Oct 2024
SHSE:605056 Ownership Breakdown as at Oct 2024

Jiangsu Canlon Building Materials (SZSE:300715)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangsu Canlon Building Materials Co., Ltd. (SZSE:300715) operates in the building materials industry and has a market cap of CN¥3.09 billion.

Operations: Jiangsu Canlon Building Materials Co., Ltd. generates its revenue from various segments within the building materials industry.

Insider Ownership: 27%

Earnings Growth Forecast: 63.8% p.a.

Jiangsu Canlon Building Materials is experiencing challenges, with recent earnings showing a decline in net income to CNY 7.76 million from CNY 55.2 million year-on-year. Despite this, the company forecasts robust revenue growth of 21.2% annually, outpacing the Chinese market average. The completion of a share buyback worth CNY 63.47 million may support shareholder value, although its return on equity is projected to remain low at 7%, and debt coverage by operating cash flow is inadequate.

SZSE:300715 Ownership Breakdown as at Oct 2024
SZSE:300715 Ownership Breakdown as at Oct 2024

Summing It All Up

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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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