Discover 3 Chinese Growth Stocks With High Insider Ownership

In a market characterized by mixed economic signals and concerns about deflationary pressures, Chinese stocks have shown resilience with varied performance across indices. Amid this backdrop, identifying growth companies with high insider ownership can be particularly appealing as it often indicates strong confidence from those closest to the business.

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%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
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%
Xi'an Sinofuse Electric (SZSE:301031)	36.8%	43.1%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 368 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Shanghai GenTech (SHSE:688596)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai GenTech Co., Ltd. (SHSE:688596) provides process critical system solutions to customers in hi-tech and advanced manufacturing industries in China, with a market cap of CN¥7.62 billion.

Operations: Shanghai GenTech's revenue segments are derived from providing process critical system solutions to customers in hi-tech and advanced manufacturing industries in China.

Insider Ownership: 13.5%

Earnings Growth Forecast: 29.2% p.a.

Shanghai GenTech demonstrates strong growth potential with earnings forecasted to grow 29.15% per year, significantly outpacing the CN market's 21.9%. Despite a recent share dilution, the company's price-to-earnings ratio of 18.4x suggests good value compared to the broader market's 27.4x. The firm recently completed a CNY 49.99 million share buyback program aimed at enhancing long-term incentives and aligning employee interests with shareholders, indicating confidence in its sustainable development strategy.

• Click here and access our complete growth analysis report to understand the dynamics of Shanghai GenTech.
• Our expertly prepared valuation report Shanghai GenTech implies its share price may be lower than expected.

Shenzhen King Explorer Science and Technology (SZSE:002917)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen King Explorer Science and Technology Corporation researches, designs, develops, manufactures, and sells intelligent equipment systems to civil explosive production and blasting service companies in China and internationally, with a market cap of CN¥3.05 billion.

Operations: The company generates revenue by providing intelligent equipment systems to civil explosive production and blasting service firms both domestically and internationally.

Insider Ownership: 33.6%

Earnings Growth Forecast: 36.2% p.a.

Shenzhen King Explorer Science and Technology has demonstrated robust growth, with earnings rising to CNY 71.72 million for the half-year ended June 30, 2024, up from CNY 46.54 million a year ago. The company forecasts significant annual profit growth of 36.2%, outpacing the CN market's expected growth of 21.9%. Despite an unstable dividend track record, its price-to-earnings ratio of 24x is below the CN market average of 27.4x, suggesting good value.

• Click to explore a detailed breakdown of our findings in Shenzhen King Explorer Science and Technology's earnings growth report.
• In light of our recent valuation report, it seems possible that Shenzhen King Explorer Science and Technology is trading beyond its estimated value.

SG Micro (SZSE:300661)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SG Micro Corp designs, markets, and sells analog ICs primarily in China with a market cap of CN¥33.54 billion.

Operations: The company's revenue primarily comes from the Integrated Circuit Industry, amounting to CN¥2.83 billion.

Insider Ownership: 32.9%

Earnings Growth Forecast: 41.3% p.a.

SG Micro is forecasted to achieve significant annual earnings growth of 41.3% over the next three years, outpacing the CN market's 21.9%. Despite a recent decrease in profit margins from 22% to 10.8%, revenue is expected to grow at a robust rate of 20.7% annually, surpassing market expectations. Insider ownership remains high with no substantial trading activity in the last three months, indicating confidence from within the company despite lower return on equity forecasts (16.2%).

• Take a closer look at SG Micro's potential here in our earnings growth report.
• The analysis detailed in our SG Micro valuation report hints at an inflated share price compared to its estimated value.

Taking Advantage

• Discover the full array of 368 Fast Growing Chinese Companies With High Insider Ownership right here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

• 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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