Chinese Exchange Growth Companies With Strong Insider Ownership

China's recent announcement of robust stimulus measures has invigorated its stock markets, with significant gains in key indices like the Shanghai Composite and CSI 300. This economic boost sets a promising backdrop for growth companies, particularly those with strong insider ownership, which can indicate confidence in the company's future prospects and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings 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%	29.9%
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)	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 take a closer look at a couple of our picks from the screened companies.

Raytron TechnologyLtd (SHSE:688002)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Raytron Technology Co., Ltd. focuses on the research and development, design, manufacturing, and sales of uncooled infrared imaging and MEMS sensor technology in China with a market cap of CN¥17.43 billion.

Operations: Raytron Technology Co., Ltd. generates revenue through its activities in the uncooled infrared imaging and MEMS sensor technology sectors in China.

Insider Ownership: 26.7%

Revenue Growth Forecast: 22.1% p.a.

Raytron Technology Ltd. is experiencing strong revenue growth, forecasted at 22.1% annually, outpacing the Chinese market's 13.2%. Despite a recent dip in net income to CNY 224.34 million for H1 2024, the company's earnings are expected to grow significantly over the next three years. Trading at a price-to-earnings ratio of 37.7x, below its industry average of 43.1x, Raytron offers good relative value among peers despite high share price volatility recently.

• Dive into the specifics of Raytron TechnologyLtd here with our thorough growth forecast report.
• The valuation report we've compiled suggests that Raytron TechnologyLtd's current price could be quite moderate.

Suzhou Zelgen BiopharmaceuticalsLtd (SHSE:688266)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Suzhou Zelgen Biopharmaceuticals Co., Ltd. operates in the biopharmaceutical industry, focusing on the research, development, and commercialization of innovative drugs, with a market cap of CN¥18.17 billion.

Operations: The company's revenue is primarily derived from its Pharmaceuticals segment, totaling CN¥407.21 million.

Insider Ownership: 29.4%

Revenue Growth Forecast: 58.7% p.a.

Suzhou Zelgen Biopharmaceuticals Ltd. demonstrates strong growth potential, with revenue forecasted to rise 58.7% annually, surpassing the Chinese market's average. Recent earnings show a narrowed net loss of CNY 66.54 million for H1 2024, improved from last year’s CNY 114.23 million loss, indicating progress towards profitability within three years. Trading significantly below its fair value estimate enhances its appeal despite low expected return on equity and no recent insider trading activity reported.

• Unlock comprehensive insights into our analysis of Suzhou Zelgen BiopharmaceuticalsLtd stock in this growth report.
• Our valuation report here indicates Suzhou Zelgen BiopharmaceuticalsLtd may be overvalued.

Shenzhen Senior Technology Material (SZSE:300568)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Senior Technology Material Co., Ltd. operates in the production of high-performance materials for lithium-ion batteries, with a market cap of CN¥13.82 billion.

Operations: Shenzhen Senior Technology Material Co., Ltd. generates its revenue primarily from the production of high-performance materials for lithium-ion batteries.

Insider Ownership: 12.8%

Revenue Growth Forecast: 24.9% p.a.

Shenzhen Senior Technology Material shows promising growth prospects, with revenue expected to increase 24.9% annually, outpacing the Chinese market. Despite a recent decline in net income to CNY 242.16 million for H1 2024 and lower profit margins of 13.3%, its price-to-earnings ratio of 31.4x remains attractive relative to the market average. The company's focus on a restricted stock incentive plan could align management interests with shareholders, although past shareholder dilution is a concern.

• Get an in-depth perspective on Shenzhen Senior Technology Material's performance by reading our analyst estimates report here.
• According our valuation report, there's an indication that Shenzhen Senior Technology Material's share price might be on the expensive side.

Seize The Opportunity

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Looking For Alternative Opportunities?

• 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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