High Insider Ownership Growth Companies On Chinese Exchanges June 2024

Amidst a backdrop of deflationary pressures and subdued consumer confidence in China, which have led to a cautious economic outlook, investors may find unique opportunities in growth companies with high insider ownership. These firms often benefit from aligned interests between management and shareholders, potentially offering resilience and strategic focus during uncertain times.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Suzhou Shijing Environmental TechnologyLtd (SZSE:301030)	22%	54.9%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
Arctech Solar Holding (SHSE:688408)	38.6%	24.8%
Anhui Huaheng Biotechnology (SHSE:688639)	31.5%	28.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	39.8%
Ningbo Deye Technology Group (SHSE:605117)	24.8%	28.5%
Fujian Wanchen Biotechnology Group (SZSE:300972)	14.9%	75.9%
UTour Group (SZSE:002707)	24%	33.1%
Xi'an Sinofuse Electric (SZSE:301031)	36.8%	43.1%

Click here to see the full list of 362 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks 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 sales of wireless audio SOC chips, with a market capitalization of approximately CN¥6.99 billion.

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

Insider Ownership: 26.3%

Earnings Growth Forecast: 26.6% p.a.

Shenzhen Bluetrum Technology, experiencing robust growth, reported a 71.3% increase in earnings last year with expectations of a 26.55% annual growth moving forward. Despite high insider ownership typically signaling confidence, the company's forecasted Return on Equity is modest at 9.8%. Trading at a Price-To-Earnings ratio of 27.2x, below the market average of 30x, it offers good value relative to its peers despite dividends being poorly covered by cash flows.

• Unlock comprehensive insights into our analysis of Shenzhen Bluetrum Technology stock in this growth report.
• According our valuation report, there's an indication that Shenzhen Bluetrum Technology's share price might be on the cheaper side.

Sansec Technology (SHSE:688489)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sansec Technology Co., Ltd. specializes in the development and production of commercial cryptographic products and solutions for internet information security in China, with a market capitalization of approximately CN¥3.54 billion.

Operations: The company generates revenue primarily through the development and production of cryptographic products and solutions for internet information security.

Insider Ownership: 29.5%

Earnings Growth Forecast: 33% p.a.

Sansec Technology, amidst a challenging financial period with a net loss widening to CNY 9.97 million from CNY 3.78 million year-over-year, still shows promise with its revenue climbing to CNY 49.38 million from CNY 36.22 million. The company's aggressive buyback strategy, repurchasing shares for CNY 54.77 million, underscores management's confidence despite current profitability issues. Forecasted earnings growth at 33% annually outpaces the Chinese market projection of 22.6%, suggesting potential for recovery and expansion.

• Take a closer look at Sansec Technology's potential here in our earnings growth report.
• According our valuation report, there's an indication that Sansec Technology's share price might be on the expensive side.

3Peak (SHSE:688536)

Simply Wall St Growth Rating: ★★★★★☆

Overview: 3Peak Incorporated is a fabless semiconductor company that specializes in offering a range of analog products and technologies, with a market capitalization of approximately CN¥14.43 billion.

Operations: The company generates revenue predominantly from the integrated circuit industry, amounting to CN¥986.27 million.

Insider Ownership: 14.7%

Earnings Growth Forecast: 77.6% p.a.

3Peak, despite a recent downturn with Q1 sales dropping to CNY 200.01 million from last year's CNY 307.26 million and a shift to a net loss of CNG 49.17 million, remains poised for recovery through strategic partnerships like the one with DigiKey, enhancing its semiconductor product distribution globally. With revenue expected to grow at 35.3% annually and anticipated profitability within three years, the company’s growth trajectory is supported by high insider ownership, aligning leadership interests closely with shareholder value enhancement.

• Click here to discover the nuances of 3Peak with our detailed analytical future growth report.
• Upon reviewing our latest valuation report, 3Peak's share price might be too optimistic.

Turning Ideas Into Actions

• Explore the 362 names from our Fast Growing Chinese Companies With High Insider Ownership screener here.
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Ready To Venture Into Other Investment Styles?

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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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