Stock Analysis

3 High Insider Ownership Growth Companies On Chinese Exchange With Earnings Up To 55% Growth

Published

Amidst a backdrop of fluctuating global markets, Chinese equities have shown resilience, buoyed by strong export figures that counterbalance domestic economic pressures. This environment underscores the potential value in exploring growth companies with high insider ownership on Chinese exchanges, which can offer unique advantages in navigating market uncertainties.

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)31.4%28.4%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Arctech Solar Holding (SHSE:688408)38.7%25.8%
Cubic Sensor and InstrumentLtd (SHSE:688665)10.1%34.3%
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 365 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.

Quectel Wireless Solutions (SHSE:603236)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Quectel Wireless Solutions Co., Ltd. is a global company specializing in the research, development, design, production, and sales of wireless communication modules and solutions, with a market capitalization of approximately CN¥13.37 billion.

Operations: The company generates its revenue primarily from the design, production, and sales of wireless communication modules and solutions globally.

Insider Ownership: 24.4%

Earnings Growth Forecast: 37.8% p.a.

Quectel Wireless Solutions, a key player in the IoT sector, has shown substantial growth with its innovative product launches like the FLM263D Wi-Fi module enhancing smart home connectivity. Despite a challenging market, Quectel's recent earnings report indicates robust recovery with significant revenue and net income improvements. High insider ownership aligns management with shareholder interests, although its forecasted Return on Equity suggests modest future profitability relative to other investments. The firm is trading below its estimated fair value, suggesting potential undervaluation in a growing market.

SHSE:603236 Ownership Breakdown as at Jul 2024

Hangzhou Changchuan TechnologyLtd (SZSE:300604)

Simply Wall St Growth Rating: ★★★★★★

Overview: Hangzhou Changchuan Technology Co., Ltd. focuses on researching, developing, producing, and selling integrated circuit equipment and high-frequency communication materials, with a market capitalization of approximately CN¥20.06 billion.

Operations: The company generates its revenue from the sale of integrated circuit equipment and high-frequency communication materials.

Insider Ownership: 28.4%

Earnings Growth Forecast: 55.3% p.a.

Hangzhou Changchuan Technology Co., Ltd, a Chinese growth company with substantial insider ownership, recently affirmed its dividend and reported a significant turnaround in quarterly earnings from a loss last year to profits this year. Despite challenges like shareholder dilution and lower profit margins compared to the previous year, the company is poised for robust revenue and earnings growth over the next three years. Recent board changes could influence future governance and strategic direction, aligning with long-term growth objectives.

SZSE:300604 Earnings and Revenue Growth as at Jul 2024

SG Micro (SZSE:300661)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SG Micro Corp, specializing in the design, marketing, and sale of analog integrated circuits primarily in China, has a market capitalization of approximately CN¥36.86 billion.

Operations: The company generates CN¥2.83 billion in revenue from its integrated circuit industry segment.

Insider Ownership: 32.8%

Earnings Growth Forecast: 41.3% p.a.

SG Micro, a Chinese growth company, is experiencing substantial earnings growth, forecasted at 41.28% annually. However, its profit margins have declined from 22% to 10.8%. Despite this drop, revenue growth is robust at 20.7% yearly, outpacing the national market average of 13.7%. Recent corporate actions include consistent dividend payments and significant changes in governance aimed at bolstering long-term strategies. These factors indicate a focused but challenging path ahead for SG Micro in leveraging insider ownership for growth.

SZSE:300661 Ownership Breakdown as at Jul 2024

Make It Happen

Seeking Other Investments?

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.

Valuation is complex, but we're helping make it simple.

Find out whether Quectel Wireless Solutions is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com