Stock Analysis

3 High Insider Ownership Growth Companies On Chinese Exchange With Up To 35% Revenue Growth

SZSE:002648
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As global trade tensions and shifting market dynamics influence investor sentiment worldwide, China's equity markets have shown resilience, particularly among companies with high insider ownership. In this context, examining growth companies on Chinese exchanges that combine robust revenue expansion with substantial insider stakes offers a compelling lens through which to view potential market opportunities.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)24.3%27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)19%27.9%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)24%22.3%
Anhui Huaheng Biotechnology (SHSE:688639)21.7%28.4%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Arctech Solar Holding (SHSE:688408)38.7%25.4%
Suzhou Sunmun Technology (SZSE:300522)36.5%63.4%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
UTour Group (SZSE:002707)23%33.1%

Click here to see the full list of 367 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Shenzhen Bluetrum Technology (SHSE:688332)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Bluetrum Technology Co., Ltd. specializes in the research, development, design, and sale of wireless audio SOC chips, with a market capitalization of approximately CN¥6.79 billion.

Operations: The company generates its revenue primarily from the design and sale of wireless audio SOC chips.

Insider Ownership: 26.3%

Revenue Growth Forecast: 25.4% p.a.

Shenzhen Bluetrum Technology, a growth company in China with high insider ownership, is trading at a good value relative to its peers with a Price-To-Earnings ratio of 26.4x. The company's revenue and earnings are forecasted to grow by 25.4% and 26.6% per year respectively, outpacing the Chinese market averages significantly. Despite these strengths, its Return on Equity is expected to be low at 9.8% in three years, and its dividend coverage by free cash flows is weak. Recent financials show robust year-over-year gains in sales and net income for Q1 2024.

SHSE:688332 Ownership Breakdown as at Jul 2024
SHSE:688332 Ownership Breakdown as at Jul 2024

3Peak (SHSE:688536)

Simply Wall St Growth Rating: ★★★★★☆

Overview: 3Peak Incorporated is a fabless semiconductor company specializing in a range of analog products and technologies, with a market capitalization of CN¥11.94 billion.

Operations: The company generates its revenue primarily from the integrated circuit industry, totaling CN¥0.99 billion.

Insider Ownership: 14.7%

Revenue Growth Forecast: 35.3% p.a.

3Peak, a Chinese growth company with high insider ownership, faces challenges despite its potential. The firm's Q1 2024 earnings show a significant revenue drop to CNY 200.01 million from CNY 307.26 million year-over-year and a shift to a net loss of CNY 49.17 million. Despite current underperformance and share dilution over the past year, 3Peak is projected to grow revenue by an impressive 35.3% annually and turn profitable within three years, outpacing market expectations significantly.

SHSE:688536 Ownership Breakdown as at Jul 2024
SHSE:688536 Ownership Breakdown as at Jul 2024

Satellite ChemicalLtd (SZSE:002648)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Satellite Chemical Co., Ltd. operates in the production and sale of functional chemicals, new polymer materials, and new energy materials both domestically and internationally, with a market capitalization of approximately CN¥60.41 billion.

Operations: The company generates CN¥19.94 billion from functional chemicals, CN¥11.80 billion from new polymer materials, and CN¥0.71 billion from new energy materials in revenue.

Insider Ownership: 11.8%

Revenue Growth Forecast: 18.2% p.a.

Satellite Chemical Co., Ltd., a Chinese growth company with high insider ownership, reported a slight increase in half-year sales to CNY 18.63 billion but saw a decrease in revenue year-over-year to CNY 19.40 billion. Despite this, net income rose to CNY 2.06 billion, reflecting improved profitability. The firm is trading at a significant discount compared to fair value estimates and is expected to grow earnings by 21.85% annually, although slightly below the broader Chinese market forecast of 22.2%.

SZSE:002648 Earnings and Revenue Growth as at Jul 2024
SZSE:002648 Earnings and Revenue Growth as at Jul 2024

Summing It All Up

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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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