Discover 3 High Growth Chinese Stocks With Strong Insider Ownership

China's stock market has recently faced a mixed bag of economic signals, with the Shanghai Composite Index and the blue-chip CSI 300 showing declines amid concerns about deflationary pressures. However, some sectors have shown resilience, highlighting opportunities for investors looking to capitalize on growth potential. In this context, companies with high insider ownership often signal strong confidence from those who know the business best. Here are three high-growth Chinese stocks where insiders hold significant stakes, potentially aligning their interests closely with those of other shareholders.

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%
Eoptolink Technology (SZSE:300502)	26.7%	39.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	82.1%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 369 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Qingdao Richen FoodLtd (SHSE:603755)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Qingdao Richen Food Co.,Ltd. focuses on the R&D, production, and sale of compound seasoning and condiments for food processing and catering companies in China, with a market cap of CN¥2.26 billion.

Operations: Revenue Segments (in millions of CN¥): Compound Seasoning: 1,540.25 Condiments: 2,304.75 Qingdao Richen Food Ltd.'s revenue is primarily derived from compound seasoning (CN¥1.54 billion) and condiments (CN¥2.30 billion).

Insider Ownership: 13.6%

Earnings Growth Forecast: 24% p.a.

Qingdao Richen Food Ltd. demonstrates strong growth potential with forecasted earnings growth of 24% per year, outpacing the Chinese market's 22%. Revenue is also expected to grow significantly at 21.3% annually, surpassing the market average of 13.5%. However, its Return on Equity is projected to be relatively low at 11.7% in three years and its dividend yield of 1.08% isn't well covered by free cash flows.

• Click to explore a detailed breakdown of our findings in Qingdao Richen FoodLtd's earnings growth report.
• The valuation report we've compiled suggests that Qingdao Richen FoodLtd's current price could be inflated.

Guangdong Skychem Technology (SHSE:688603)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Skychem Technology Co., Ltd. focuses on the research and development and manufacturing of electronic materials for the printed circuit board, semiconductor, packaging, and touch screen industries, with a market cap of CN¥2.94 billion.

Operations: The company generates revenue primarily from its Specialty Chemicals segment, which amounts to CN¥343.58 million.

Insider Ownership: 31.7%

Earnings Growth Forecast: 36.7% p.a.

Guangdong Skychem Technology is poised for robust growth, with revenue forecasted to increase by 28% annually and earnings expected to grow at 36.7% per year, both surpassing the Chinese market averages. Recent buybacks amounting to CNY 37.77 million reflect strong insider confidence despite a highly volatile share price. The company has also been added to major indices like the Shanghai Stock Exchange A Share Index and Composite Index, indicating enhanced market visibility.

• Click here and access our complete growth analysis report to understand the dynamics of Guangdong Skychem Technology.
• According our valuation report, there's an indication that Guangdong Skychem Technology's share price might be on the expensive side.

M-Grass Ecology And Environment (Group) (SZSE:300355)

Simply Wall St Growth Rating: ★★★★★☆

Overview: M-Grass Ecology And Environment (Group) Co., Ltd. operates in the ecological restoration and environmental protection sector with a market cap of CN¥3.79 billion.

Operations: M-Grass Ecology And Environment (Group) Co., Ltd. generates revenue primarily from its ecological restoration and environmental protection services.

Insider Ownership: 24.4%

Earnings Growth Forecast: 74.9% p.a.

M-Grass Ecology And Environment (Group) is expected to see significant growth, with revenue projected to increase by 39.5% annually and earnings by 74.86% per year, both outpacing the Chinese market averages. Despite trading at 63.7% below its estimated fair value, the company faces challenges such as unstable dividend history and insufficient interest coverage by earnings. Recently, it announced a final cash dividend of CNY0.23 per share for 2023, reflecting ongoing shareholder returns despite financial hurdles.

• Dive into the specifics of M-Grass Ecology And Environment (Group) here with our thorough growth forecast report.
• Our expertly prepared valuation report M-Grass Ecology And Environment (Group) implies its share price may be lower than expected.

Next Steps

• Unlock more gems! Our Fast Growing Chinese Companies With High Insider Ownership screener has unearthed 366 more companies for you to explore.Click here to unveil our expertly curated list of 369 Fast Growing Chinese Companies With High Insider Ownership.
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Seeking Other Investments?

• 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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