Three Growth Companies On Chinese Exchange With High Insider Ownership And At Least 23% Earnings Growth

Despite facing growth headwinds as indicated by the recent dip in manufacturing PMI, Chinese equities have shown resilience, with expectations for meeting this year's growth targets bolstered by supportive government measures. In such a market environment, companies with high insider ownership can be particularly compelling, as they often signal strong confidence from those closest to the business in its growth prospects and financial health.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Arctech Solar Holding (SHSE:688408)	38.6%	24.5%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
Ningbo Deye Technology Group (SHSE:605117)	24.8%	28.4%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
Anhui Huaheng Biotechnology (SHSE:688639)	31.5%	28.4%
Fujian Wanchen Biotechnology Group (SZSE:300972)	15.3%	75.9%
UTour Group (SZSE:002707)	24%	33.1%
Xi'an Sinofuse Electric (SZSE:301031)	36.8%	43.1%
Offcn Education Technology (SZSE:002607)	26.1%	65.3%

Click here to see the full list of 397 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Shenzhen Hopewind Electric (SHSE:603063)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Hopewind Electric Co., Ltd. specializes in the research, development, manufacturing, and sales of energy and electric drive products with a market capitalization of CN¥8.13 billion.

Operations: The company generates revenue through the development, manufacturing, and sales of energy and electric drive products.

Insider Ownership: 30.4%

Earnings Growth Forecast: 23.4% p.a.

Shenzhen Hopewind Electric is experiencing substantial growth, with earnings expected to increase significantly by 23.42% annually. Despite a recent dip in quarterly revenue to CNY 548.5 million from CNY 609.74 million and net income falling to CNY 55.35 million from CNY 78.47 million, annual figures show robust growth with revenue rising to CNY 3,752.02 million from CNY 2,809.14 million and net income more than doubling to CNY 502.25 million year-over-year. The stock is currently trading at a good value relative to peers and below analyst price targets suggesting potential upside.

• Take a closer look at Shenzhen Hopewind Electric's potential here in our earnings growth report.
• Our valuation report here indicates Shenzhen Hopewind Electric may be undervalued.

Jiangsu Sinopep-Allsino Biopharmaceutical (SHSE:688076)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. is a biomedical company in China, specializing in the R&D, production, sales, and technical services of peptides and small molecule drugs, with a market capitalization of approximately CN¥12.47 billion.

Operations: The company generates revenue primarily through its medicine manufacturing segment, which recorded CN¥1.18 billion in sales.

Insider Ownership: 16.1%

Earnings Growth Forecast: 30.1% p.a.

Jiangsu Sinopep-Allsino Biopharmaceutical, a Chinese growth company with high insider ownership, reported a significant increase in Q1 revenue and net income, reaching CNY 355.82 million and CNY 66.33 million respectively. Despite a dividend yield of 0.68% not fully covered by cash flows, the firm is trading at 29.2% below its estimated fair value. Analysts forecast robust annual earnings growth of over 20%, outpacing the broader Chinese market's expectations.

• Click to explore a detailed breakdown of our findings in Jiangsu Sinopep-Allsino Biopharmaceutical's earnings growth report.
• In light of our recent valuation report, it seems possible that Jiangsu Sinopep-Allsino Biopharmaceutical is trading beyond its estimated value.

Yangtze Optical Electronic (SHSE:688143)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Yangtze Optical Electronic Co., Ltd. specializes in the development, production, and sale of special optical fibers, cables, and optoelectronic systems primarily in China, with a market capitalization of approximately CN¥3.14 billion.

Operations: The company generates CN¥254.21 million from its scientific and technical instruments segment.

Insider Ownership: 27.5%

Earnings Growth Forecast: 51.6% p.a.

Yangtze Optical Electronic, a Chinese growth company with high insider ownership, demonstrated strong financial recovery in its first quarter of 2024. The firm reported sales of CNY 57.05 million and a net income of CNY 6.53 million, marking a significant turnaround from the previous year's loss. This performance is underpinned by expectations of robust annual profit growth at 51.6% and revenue growth at 40.8%, both well above market averages. However, the company faces challenges with declining profit margins and a forecasted low return on equity (10.3%) in three years' time.

• Click here and access our complete growth analysis report to understand the dynamics of Yangtze Optical Electronic.
• The valuation report we've compiled suggests that Yangtze Optical Electronic's current price could be inflated.

Turning Ideas Into Actions

• Gain an insight into the universe of 397 Fast Growing Chinese Companies With High Insider Ownership by clicking here.
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Curious About Other Options?

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• 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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