3 Chinese Stocks With High Insider Ownership Expecting Up To 73% Profit Growth

As Chinese equities have recently retreated amid weak corporate earnings and economic data, investors are increasingly seeking resilient opportunities within the market. Companies with high insider ownership often demonstrate strong alignment between management and shareholder interests, making them attractive options during uncertain times.

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)	22.9%	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%	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 383 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Shanghai Lily&Beauty CosmeticsLtd (SHSE:605136)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai Lily&Beauty Cosmetics Co., Ltd. specializes in online cosmetics marketing and retailing services in China, with a market cap of CN¥2.45 billion.

Operations: Revenue Segments (in millions of CN¥): Shanghai Lily&Beauty Cosmetics Co., Ltd. generates revenue primarily through its online cosmetics marketing and retailing services in China, with a market cap of CN¥2.45 billion.

Insider Ownership: 32.5%

Earnings Growth Forecast: 52.7% p.a.

Shanghai Lily&Beauty Cosmetics Ltd. shows potential as a growth company with high insider ownership in China. Despite a decline in revenue to CNY 966.13 million for the first half of 2024, the company turned profitable with net income of CNY 2.69 million compared to a significant loss last year. Earnings are forecast to grow significantly at 52.67% annually, outpacing both the company's past performance and market averages, although share price volatility and an unstable dividend track record remain concerns.

• Unlock comprehensive insights into our analysis of Shanghai Lily&Beauty CosmeticsLtd stock in this growth report.
• Our valuation report unveils the possibility Shanghai Lily&Beauty CosmeticsLtd's shares may be trading at a premium.

Shanghai Aohua Photoelectricity Endoscope (SHSE:688212)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai AoHua Photoelectricity Endoscope Co., Ltd. is a medical device company that focuses on the R&D, manufacture, and sale of electronic endoscopic equipment and consumables in China and internationally, with a market cap of CN¥5.46 billion.

Operations: The company's revenue segments include the research and development, manufacture, and sale of electronic endoscopic equipment and other consumables in China and internationally.

Insider Ownership: 32.3%

Earnings Growth Forecast: 73% p.a.

Shanghai Aohua Photoelectricity Endoscope Co., Ltd. has seen revenue growth, with sales reaching CNY 353.52 million for the first half of 2024, up from CNY 289.08 million a year ago. However, net income dropped to CNY 5.66 million from CNY 38.08 million last year, reflecting a decrease in profit margins and earnings per share. Despite this, analysts expect significant annual earnings growth of over 73%, outpacing market averages, although the stock has exhibited high volatility recently and trades slightly below its fair value estimate.

• Navigate through the intricacies of Shanghai Aohua Photoelectricity Endoscope with our comprehensive analyst estimates report here.
• According our valuation report, there's an indication that Shanghai Aohua Photoelectricity Endoscope's share price might be on the cheaper side.

Hangzhou Zhongtai Cryogenic Technology (SZSE:300435)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hangzhou Zhongtai Cryogenic Technology Corporation develops, designs, manufactures, and sells cryogenic equipment in China with a market cap of CN¥3.77 billion.

Operations: The company's revenue segments are derived from developing, designing, manufacturing, and selling cryogenic equipment in China.

Insider Ownership: 15.4%

Earnings Growth Forecast: 30% p.a.

Hangzhou Zhongtai Cryogenic Technology's earnings are forecast to grow significantly at 30% annually over the next three years, outpacing the Chinese market. Despite a recent dip in net income to CNY 123.42 million for H1 2024 from CNY 184.22 million a year ago, revenue growth is expected at 19.5% per year, above market average but below high-growth benchmarks. The company has also completed a share buyback of nearly CNY 50 million, indicating strong insider confidence.

• Click here and access our complete growth analysis report to understand the dynamics of Hangzhou Zhongtai Cryogenic Technology.
• Our valuation report unveils the possibility Hangzhou Zhongtai Cryogenic Technology's shares may be trading at a discount.

Make It Happen

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Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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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