Stock Analysis

Exploring Three Growth Companies With High Insider Ownership On The Chinese Exchange

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Amidst a backdrop of fluctuating global markets, Chinese equities have shown resilience, with minimal changes despite growth challenges indicated by recent manufacturing data. In this context, exploring growth companies with high insider ownership on the Chinese exchange could offer valuable insights into firms that potentially possess strong internal confidence and stability in uncertain times.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings 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%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)22%54.9%
Eoptolink Technology (SZSE:300502)26.7%39.4%
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.

Underneath we present a selection of stocks filtered out by our screen.

Guangdong Huate Gas (SHSE:688268)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Huate Gas Co., Ltd. specializes in the production and supply of gas and gas equipment across China, with a market capitalization of approximately CN¥6.24 billion.

Operations: The company generates its revenue primarily through the production and supply of gas and related equipment.

Insider Ownership: 22%

Revenue Growth Forecast: 22.5% p.a.

Guangdong Huate Gas is poised for robust growth with its revenue and earnings expected to outpace the broader Chinese market, growing at 22.5% and 29.2% per year respectively. Despite a low dividend coverage by cash flows, the company's strategic moves including a recent CNY 300 million private placement and share buybacks underscore a proactive management approach. However, its forecasted Return on Equity of 14.9% suggests potential challenges in achieving superior efficiency or profitability levels compared to some peers.

SHSE:688268 Ownership Breakdown as at Jun 2024

Guangzhou Wondfo BiotechLtd (SZSE:300482)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangzhou Wondfo Biotech Co., Ltd is an in vitro diagnostics company based in China, specializing in the development, production, and sale of point-of-care testing products and solutions for rapid diagnosis and chronic disease management, with a market capitalization of approximately CN¥13.18 billion.

Operations: The company generates revenue primarily from its diagnostic kits and equipment segment, totaling CN¥2.79 billion.

Insider Ownership: 31.8%

Revenue Growth Forecast: 19.3% p.a.

Guangzhou Wondfo Biotech Co., Ltd. is experiencing significant growth, with earnings and revenue forecasted to grow at 24.27% and 19.3% per year respectively, outpacing the broader Chinese market. Trading at a Price-To-Earnings ratio of 26.2x, it offers good value relative to its peers. However, its Return on Equity is expected to remain low at 13%, indicating potential efficiency challenges ahead despite high insider ownership signaling strong confidence from those closest to the company's operations.

SZSE:300482 Earnings and Revenue Growth as at Jun 2024

ApicHope Pharmaceutical (SZSE:300723)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ApicHope Pharmaceutical Co., Ltd operates in the pharmaceutical industry, focusing on the research, development, production, and sale of drugs, with a market capitalization of approximately CN¥9.83 billion.

Operations: The company generates revenue through the research, development, production, and sale of pharmaceutical drugs.

Insider Ownership: 19.2%

Revenue Growth Forecast: 19.5% p.a.

ApicHope Pharmaceutical, despite a recent dip in net profit margin to 7.2%, is poised for robust growth with earnings expected to increase by 33.16% annually. Revenue growth forecasts of 19.5% per year also outstrip the broader Chinese market's average, though just shy of the high-growth benchmark of 20%. Challenges include shareholder dilution and unstable dividends, alongside significant one-off items impacting financial results. Recent corporate actions include dividend distributions and amendments to company bylaws, underscoring active management engagement.

SZSE:300723 Ownership Breakdown as at Jun 2024

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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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