3 Chinese Growth Stocks With Insider Ownership Up To 32%

In recent weeks, Chinese equities have experienced modest gains despite weaker-than-expected economic activity, indicating a complex but resilient market landscape. Amid this backdrop, insider ownership can be a significant indicator of confidence in growth companies. When evaluating growth stocks in such an environment, high insider ownership often signals strong belief in the company's future prospects and alignment with shareholder interests.

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%	26.9%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
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%	40.1%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 372 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Changzhou Fusion New Material (SHSE:688503)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Changzhou Fusion New Material Co., Ltd. focuses on the R&D, production, and sale of conductive silver paste, electronic component paste, conductive adhesive, and semiconductor materials for the photovoltaic industry globally, with a market cap of CN¥6.77 billion.

Operations: Changzhou Fusion New Material Co., Ltd. generates revenue of CN¥11.46 billion from its Electronic Components & Parts segment.

Insider Ownership: 25.6%

Changzhou Fusion New Material exhibits strong growth potential with forecasted annual earnings growth of 31.34%, significantly outpacing the Chinese market's 21.9%. Despite a decline in profit margins from 6.2% to 3.4%, the company is trading at a substantial discount, approximately 66.9% below its estimated fair value. Recent activities include a share repurchase program worth CNY 300 million aimed at maintaining company value and shareholder rights, reflecting confidence from insiders and management in future prospects.

• Navigate through the intricacies of Changzhou Fusion New Material with our comprehensive analyst estimates report here.
• Our valuation report here indicates Changzhou Fusion New Material may be undervalued.

Unionman TechnologyLtd (SHSE:688609)

Simply Wall St Growth Rating: ★★★★★★

Overview: Unionman Technology Co., Ltd. produces, sells, and services multimedia information terminals, smart home network communication equipment, Internet of Things communication modules, optical communication modules, smart security equipment, and related software systems and platforms with a market cap of CN¥4.04 billion.

Operations: Unionman Technology Co., Ltd. generates revenue primarily from the Computer, Communications, and Other Electronic Intelligent Equipment Manufacturing Industry, amounting to CN¥2.29 billion.

Insider Ownership: 32.5%

Unionman Technology Ltd. is forecasted to achieve substantial revenue growth of 31.7% per year, outpacing the Chinese market's average of 13.4%. Earnings are expected to grow at an impressive rate of 81.75% annually, with profitability anticipated within three years and a high return on equity projected at 21.8%. Despite recent cancellation of a private placement in June 2024, the company remains well-valued compared to peers and industry standards.

• Unlock comprehensive insights into our analysis of Unionman TechnologyLtd stock in this growth report.
• The analysis detailed in our Unionman TechnologyLtd valuation report hints at an deflated share price compared to its estimated value.

Beijing eGOVA Co (SZSE:300075)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beijing eGOVA Co., Ltd is a smart city core application and operation service provider in China with a market cap of CN¥8.04 billion.

Operations: The company's revenue segments include smart city core applications and operation services in China.

Insider Ownership: 27.2%

Beijing eGOVA Co. is poised for significant growth with earnings forecasted to increase 38.28% annually, surpassing the Chinese market's average of 21.9%. Revenue is also expected to grow at a robust 24.5% per year. Recent insider activity includes Wu Qianghua acquiring an additional 5.07% stake for approximately CNY 360 million, signaling strong insider confidence despite lower profit margins and a modest return on equity forecast of 9.5%.

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

Summing It All Up

• Delve into our full catalog of 372 Fast Growing Chinese Companies With High Insider Ownership here.
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Contemplating Other Strategies?

• 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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