Chinese Growth Companies With High Insider Ownership For August 2024

As Chinese equities experience mixed performance amid weak manufacturing data, investors are increasingly focused on companies with strong growth potential and significant insider ownership. In this article, we explore three Chinese growth stocks that stand out for their high levels of insider ownership, a factor often seen as a positive indicator of confidence in the company's future prospects.

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%	28.4%
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%
UTour Group (SZSE:002707)	23%	36.1%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	82.1%

Click here to see the full list of 363 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Guangzhou Kingmed Diagnostics Group (SHSE:603882)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangzhou Kingmed Diagnostics Group Co., Ltd. (SHSE:603882) operates in the medical diagnostics industry, providing comprehensive laboratory testing services, with a market cap of CN¥13.90 billion.

Operations: The company's revenue is primarily generated from third-party medical diagnostic services, amounting to CN¥8.26 billion.

Insider Ownership: 17.6%

Revenue Growth Forecast: 13.9% p.a.

Guangzhou Kingmed Diagnostics Group shows promising growth potential with earnings forecasted to grow 34.93% annually, significantly outpacing the CN market's 22.1%. Despite recent share buybacks totaling CNY 49.99 million, the company has experienced high share price volatility and a decline in profit margins from 15.4% to 5.7%. Insider ownership remains strong, but dividends are not well covered by free cash flows, and Return on Equity is expected to be low at 11.9% in three years.

• Click here to discover the nuances of Guangzhou Kingmed Diagnostics Group with our detailed analytical future growth report.
• In light of our recent valuation report, it seems possible that Guangzhou Kingmed Diagnostics Group is trading beyond its estimated value.

Bona Film Group (SZSE:001330)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Bona Film Group Co., Ltd. primarily engages in film production and distribution in China, with a market cap of CN¥5.81 billion.

Operations: Bona Film Group Co., Ltd. generates revenue primarily from film production and distribution in China.

Insider Ownership: 21.8%

Revenue Growth Forecast: 29.0% p.a.

Bona Film Group is forecast to achieve profitability within three years, with annual revenue growth projected at 29%, outpacing the broader CN market. Recent buybacks totaling CNY 37.5 million underscore strong insider confidence, though Return on Equity is expected to be modest at 6.5% in three years. Earnings are anticipated to grow significantly at 76.09% per year, indicating robust potential despite some limitations in profitability metrics.

• Unlock comprehensive insights into our analysis of Bona Film Group stock in this growth report.
• Our expertly prepared valuation report Bona Film Group implies its share price may be lower than expected.

PharmaResources (Shanghai) (SZSE:301230)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PharmaResources (Shanghai) Co., Ltd. operates as a CRO, CDMO, and CMO service provider of drug discovery in China with a market cap of CN¥3.27 billion.

Operations: PharmaResources (Shanghai) Co., Ltd. generates revenue through its CRO, CDMO, and CMO services in the drug discovery sector in China.

Insider Ownership: 13.9%

Revenue Growth Forecast: 18.6% p.a.

PharmaResources (Shanghai) is projected to see significant earnings growth at 35.08% annually, surpassing the broader CN market. Despite a volatile share price and lower profit margins compared to last year, insider ownership remains strong with recent buybacks totaling CNY 37.49 million. However, Return on Equity is forecasted to be low at 6.3% in three years, and a proposal to expand its main business was recently rejected by shareholders.

• Click to explore a detailed breakdown of our findings in PharmaResources (Shanghai)'s earnings growth report.
• Our valuation report here indicates PharmaResources (Shanghai) may be overvalued.

Make It Happen

• Delve into our full catalog of 363 Fast Growing Chinese Companies With High Insider Ownership 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.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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