Stock Analysis
### 3 Chinese Growth Stocks With High Insider Ownership And Up To 132% Earnings Growth ###
Reviewed by Simply Wall St
Chinese equities have recently faced downward pressure, influenced by unexpected rate cuts from the central bank and a general sense of economic uncertainty. Despite these challenges, certain growth companies with high insider ownership continue to show strong earnings potential, making them noteworthy in the current market landscape. In this environment, stocks that combine robust earnings growth with significant insider ownership can be particularly attractive. Such characteristics often indicate confidence from those closest to the company's operations and strategic direction.
Top 10 Growth Companies With High Insider Ownership In China
| Name | Insider Ownership | Earnings Growth |
| Anhui Huaheng Biotechnology (SHSE:688639) | 31.5% | 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% |
| Arctech Solar Holding (SHSE:688408) | 38.7% | 28.4% |
| KEBODA TECHNOLOGY (SHSE:603786) | 12.8% | 25.1% |
| Suzhou Sunmun Technology (SZSE:300522) | 36.5% | 63.4% |
| Sineng ElectricLtd (SZSE:300827) | 36.5% | 39.8% |
| UTour Group (SZSE:002707) | 23% | 36.1% |
Let's review some notable picks from our screened stocks.
Sunwave CommunicationsLtd (SZSE:002115)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Sunwave Communications Co.Ltd operates in the communication and Internet advertising media sectors both in China and internationally, with a market cap of CN¥3.47 billion.
Operations: Sunwave Communications Ltd's revenue segments include the communication business and Internet advertising media business in China and internationally.
Insider Ownership: 12.8%
Earnings Growth Forecast: 65.5% p.a.
Sunwave Communications Ltd. is poised for significant growth, with revenue forecasted to increase by 25.9% per year and earnings expected to grow at 65.51% annually, outpacing the broader Chinese market. Despite lower profit margins (0.4%) compared to last year (1.2%), the company remains attractive due to its high insider ownership and robust growth prospects highlighted in the upcoming July 12 shareholders meeting focused on external guarantees adjustments for 2024.
- Take a closer look at Sunwave CommunicationsLtd's potential here in our earnings growth report.
- The valuation report we've compiled suggests that Sunwave CommunicationsLtd's current price could be inflated.
Troy Information Technology (SZSE:300366)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Troy Information Technology Co., Ltd. is a digital transformation service provider in China with a market cap of CN¥5.03 billion.
Operations: Troy Information Technology Co., Ltd. generates revenue primarily from its digital transformation services in China.
Insider Ownership: 25%
Earnings Growth Forecast: 132.1% p.a.
Troy Information Technology is experiencing rapid growth, with revenue forecasted to increase by 42.8% annually and earnings projected to grow at 132.13% per year, outpacing the broader Chinese market. Despite a highly volatile share price over the past three months, the company is expected to become profitable within three years. The recent shareholders meeting on June 28 focused on extending financial aid to a controlled subsidiary, reflecting strategic internal investments.
- Click to explore a detailed breakdown of our findings in Troy Information Technology's earnings growth report.
- According our valuation report, there's an indication that Troy Information Technology's share price might be on the expensive side.
Hubei Century Network Technology (SZSE:300494)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Hubei Century Network Technology Inc. operates an online entertainment platform in China and internationally, with a market cap of CN¥4.63 billion.
Operations: Revenue segments for Hubei Century Network Technology Inc. include CN¥1.25 billion from online gaming and CN¥0.75 billion from digital advertising, both domestically and internationally.
Insider Ownership: 28.1%
Earnings Growth Forecast: 34.3% p.a.
Hubei Century Network Technology is set for substantial growth, with earnings projected to rise 34.3% annually and revenue expected to grow 23% per year, both surpassing the broader Chinese market. However, profit margins have declined from 13.8% to 9.5%, and Return on Equity is forecasted at a modest 12.8%. Despite insider ownership being high, recent dividend decreases may concern some investors. The Price-To-Earnings ratio of 42.1x aligns closely with industry standards.
- Delve into the full analysis future growth report here for a deeper understanding of Hubei Century Network Technology.
- Our expertly prepared valuation report Hubei Century Network Technology implies its share price may be too high.
Turning Ideas Into Actions
- Dive into all 363 of the Fast Growing Chinese Companies With High Insider Ownership we have identified here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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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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About SZSE:002115
Sunwave CommunicationsLtd
Engages in the communication business and Internet advertising media business in China and internationally.
