Stock Analysis

Three Growth Companies With High Insider Ownership On Chinese Exchanges Showcasing 27% Revenue Growth

SZSE:002261
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Amidst a backdrop of mixed global economic signals, China's markets have shown resilience with key indices like the Hang Seng Index experiencing growth. This setting provides a fertile ground for exploring growth companies with high insider ownership in China, which are often well-positioned to capitalize on market opportunities due to aligned interests between management and shareholders.

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%24.8%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
Ningbo Deye Technology Group (SHSE:605117)24.8%28.4%
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 385 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of from the screener.

Suzhou Oriental Semiconductor (SHSE:688261)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Suzhou Oriental Semiconductor Company Limited, a semiconductor technology firm based in China, has a market capitalization of approximately CN¥5.11 billion.

Operations: The firm generates CN¥843.79 million in revenue from its electric equipment segment.

Insider Ownership: 25.6%

Revenue Growth Forecast: 27.1% p.a.

Suzhou Oriental Semiconductor is experiencing significant growth with earnings expected to increase by 57.2% annually, outpacing the Chinese market's 22.8%. Revenue growth is also robust at 27.1% per year, surpassing the market average of 13.9%. However, profit margins have declined from last year's 25.4% to 8.7%. Recent financial results show a sharp decrease in quarterly revenue and net income, highlighting volatility in performance despite aggressive share buybacks earlier this year.

SHSE:688261 Ownership Breakdown as at Jun 2024
SHSE:688261 Ownership Breakdown as at Jun 2024

Montnets Cloud Technology Group (SZSE:002123)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Montnets Cloud Technology Group Co., Ltd. operates in the cloud communication and services sector with a market capitalization of approximately CN¥6.18 billion.

Operations: The revenue segments for this firm are not detailed in the provided text.

Insider Ownership: 19.3%

Revenue Growth Forecast: 14.4% p.a.

Montnets Cloud Technology Group, a Chinese firm with high insider ownership, is poised for substantial growth. Despite a recent dip in net income and earnings per share as reported in Q1 2024, the company's sales have increased to CNY 1.10 billion from CNY 1.04 billion year-over-year. Forecasts suggest robust annual revenue growth at 14.4% and an impressive profit surge expected at 112.43% annually over the next three years, positioning it well against its peers and above average market expectations.

SZSE:002123 Earnings and Revenue Growth as at Jun 2024
SZSE:002123 Earnings and Revenue Growth as at Jun 2024

Talkweb Information SystemLtd (SZSE:002261)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Talkweb Information System Co., Ltd. operates in China, offering education services and developing mobile games, with a market capitalization of approximately CN¥14.85 billion.

Operations: The company generates revenue through its education services and mobile gaming segments in China.

Insider Ownership: 20.8%

Revenue Growth Forecast: 19.9% p.a.

Talkweb Information System Co., Ltd. has transitioned from a net loss to profitability this year, with a substantial increase in annual revenue to CNY 3.15 billion and net income of CNY 44.96 million. Despite a lower forecasted return on equity at 5.1%, the company's earnings are expected to grow by 58.6% annually, outpacing the Chinese market average of 22.8%. This growth is supported by significant non-cash earnings and an aggressive revenue expansion forecast at 19.9% per year, indicating robust future prospects despite some underlying financial softness.

SZSE:002261 Ownership Breakdown as at Jun 2024
SZSE:002261 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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