Unveiling 3 Chinese Growth Companies With High Insider Ownership And Up To 37% Revenue Growth

As global markets navigate through a myriad of challenges, including rising trade tensions and shifting economic indicators, China's market has shown resilience with sectors like technology demonstrating significant growth. In this context, exploring growth companies with high insider ownership in China could offer valuable insights, especially given the current climate where understanding intrinsic motivations and stability within companies is crucial.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Anhui Huaheng Biotechnology (SHSE:688639)	21.7%	26.5%
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%
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 364 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Koal Software (SHSE:603232)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Koal Software Co., Ltd. specializes in developing public key infrastructure platforms in China, with a market capitalization of approximately CN¥2.68 billion.

Operations: The company generates its revenue primarily from the development of public key infrastructure platforms.

Insider Ownership: 31.3%

Revenue Growth Forecast: 25.9% p.a.

Koal Software, despite a recent downturn in sales and net losses (CNY 48.54 million in revenue and CNY 51.5 million net loss for Q1 2024), is projected to see substantial growth. Analysts expect revenue to increase by 25.9% annually, outpacing the Chinese market's average of 13.7%. However, its return on equity is anticipated to remain low at 6.8% in three years' time, reflecting potential challenges in profitability despite high expected earnings growth of 47.8% per year.

• Navigate through the intricacies of Koal Software with our comprehensive analyst estimates report here.
• Our valuation report here indicates Koal Software may be overvalued.

Lontium Semiconductor (SHSE:688486)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Lontium Semiconductor Corporation, based in China, specializes in designing, manufacturing, and selling semiconductor products with a market capitalization of approximately CN¥5.93 billion.

Operations: The company's revenue is derived from the design, manufacture, and sale of semiconductor products in China.

Insider Ownership: 38.5%

Revenue Growth Forecast: 37.4% p.a.

Lontium Semiconductor, with a price-to-earnings ratio of 46.9x below the industry average, shows promise in China's growth-focused semiconductor sector. The company's earnings are expected to grow by 33.4% annually, surpassing the Chinese market forecast of 22.2%. However, its dividend coverage is weak, and return on equity is projected to be low at 12.8% in three years. Despite these challenges, revenue growth at 37.4% per year outstrips market expectations significantly.

• Click here to discover the nuances of Lontium Semiconductor with our detailed analytical future growth report.
• The valuation report we've compiled suggests that Lontium Semiconductor's current price could be inflated.

Macmic Science&TechnologyLtd (SHSE:688711)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Macmic Science&Technology Co., Ltd. specializes in the design, development, production, and sale of power semiconductor chips, single tubes, and modules both in Taiwan and internationally, with a market capitalization of approximately CN¥3.47 billion.

Operations: The company generates revenue primarily from the semiconductor sector, totaling approximately CN¥1.42 billion.

Insider Ownership: 36.6%

Revenue Growth Forecast: 23.2% p.a.

Macmic Science&TechnologyLtd. faces challenges with a recent net loss of CNY 1.72 million and declining revenue from CNY 331.15 million to CNY 246.42 million year-over-year, contrasting sharply with its previous profitability. Despite these setbacks, the company is anticipated to see significant earnings growth at an annual rate of 21.49%, outpacing the Chinese market's average. However, it trades at a substantial discount to its estimated fair value and struggles with debt coverage by operating cash flow, reflecting financial vulnerabilities amidst high insider ownership.

• Unlock comprehensive insights into our analysis of Macmic Science&TechnologyLtd stock in this growth report.
• Our valuation report here indicates Macmic Science&TechnologyLtd may be undervalued.

Turning Ideas Into Actions

• Delve into our full catalog of 364 Fast Growing Chinese Companies With High Insider Ownership here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Seeking Other Investments?

• 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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