Top Growth Companies With High Insider Ownership On Chinese Exchanges
Reviewed by Simply Wall St
As Chinese stocks faced declines due to weak inflation data and concerns about economic stability, the market's performance has been mixed, with both the Shanghai Composite Index and the blue-chip CSI 300 falling over 2%. Despite these challenges, growth companies with high insider ownership can offer unique opportunities for investors looking to navigate these turbulent times. In this article, we will explore three such stocks on Chinese exchanges that stand out for their potential resilience and strong insider confidence.
Top 10 Growth Companies With High Insider Ownership In China
| Name | Insider Ownership | Earnings Growth |
| ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130) | 18% | 28.7% |
| Jiayou International LogisticsLtd (SHSE:603871) | 22.6% | 24.6% |
| Western Regions Tourism DevelopmentLtd (SZSE:300859) | 13.9% | 39.2% |
| Arctech Solar Holding (SHSE:688408) | 38.6% | 29.9% |
| 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% | 25.2% |
| BIWIN Storage Technology (SHSE:688525) | 18.8% | 116.8% |
| Offcn Education Technology (SZSE:002607) | 25.1% | 75.7% |
Let's dive into some prime choices out of the screener.
Gan & Lee Pharmaceuticals (SHSE:603087)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Gan & Lee Pharmaceuticals is a biopharmaceutical company involved in the research, development, production, and sale of insulin analog APIs and injections in China with a market cap of CN¥23.30 billion.
Operations: The company generates CN¥2.69 billion from the development, production, and sales of insulin and related products.
Insider Ownership: 36.6%
Revenue Growth Forecast: 26.3% p.a.
Gan & Lee Pharmaceuticals, a growth company with high insider ownership in China, has been making significant strides. The company's earnings are forecast to grow at 43.3% per year, outpacing the CN market's 23%. It became profitable this year and reported half-year revenue of CNY 1.31 billion and net income of CNY 298.9 million. Recently, Gan & Lee announced a share repurchase program worth up to CNY 300 million for employee stock plans or equity incentives.
- Take a closer look at Gan & Lee Pharmaceuticals' potential here in our earnings growth report.
- Our comprehensive valuation report raises the possibility that Gan & Lee Pharmaceuticals is priced higher than what may be justified by its financials.
Runben Biotechnology (SHSE:603193)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Runben Biotechnology Co., Ltd. focuses on the research, production, and sale of mosquito repellent products, baby care products, and essential oil products with a market cap of CN¥7.12 billion.
Operations: The company generates revenue primarily from personal products, amounting to CN¥1.20 billion.
Insider Ownership: 33.1%
Revenue Growth Forecast: 24.2% p.a.
Runben Biotechnology's recent earnings report shows substantial growth, with half-year sales rising to CNY 743.62 million from CNY 578.77 million and net income increasing to CNY 180.03 million from CNY 119.47 million year-over-year. Analysts forecast significant revenue growth at 24.2% annually, outpacing the CN market's average of 13.1%. Despite a low return on equity forecast (16.6%), the company's price-to-earnings ratio (24.8x) remains attractive compared to the CN market (25.9x).
- Navigate through the intricacies of Runben Biotechnology with our comprehensive analyst estimates report here.
- According our valuation report, there's an indication that Runben Biotechnology's share price might be on the expensive side.
Shandong Sinocera Functional Material (SZSE:300285)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Shandong Sinocera Functional Material Co., Ltd. (SZSE:300285) operates in the functional materials sector and has a market cap of CN¥14.69 billion.
Operations: Shandong Sinocera Functional Material Co., Ltd. (SZSE:300285) operates in the functional materials sector and has a market cap of CN¥14.69 billion. The company's revenue segments include advanced ceramics, electronic chemicals, and environmental protection materials.
Insider Ownership: 25.8%
Revenue Growth Forecast: 17.4% p.a.
Shandong Sinocera Functional Material reported half-year earnings with sales of CNY 1.91 billion and net income of CNY 330.44 million, showing steady year-over-year growth. Analysts forecast its revenue to grow at 17.4% annually, faster than the CN market average, with expected annual profit growth of 25.5%. The company’s price-to-earnings ratio (25.3x) is slightly below the market average, and insider ownership remains high with no significant insider trading activity recently reported.
- Get an in-depth perspective on Shandong Sinocera Functional Material's performance by reading our analyst estimates report here.
- Our expertly prepared valuation report Shandong Sinocera Functional Material implies its share price may be lower than expected.
Key Takeaways
- Embark on your investment journey to our 385 Fast Growing Chinese Companies With High Insider Ownership selection 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.
- Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
Ready To Venture Into Other Investment Styles?
- 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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About SHSE:603087
Gan & Lee Pharmaceuticals
A biopharmaceutical company, engages in the research, development, production, and sale of insulin analog active pharmaceutical ingredients (APIs) and injections in China.
Flawless balance sheet with high growth potential.
