Stock Analysis

3 High Insider Ownership Growth Companies On Chinese Exchange With At Least 19% Revenue Growth

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Amidst a backdrop of declining home prices and mixed economic signals, the Chinese market presents a complex landscape for investors. In such an environment, growth companies with high insider ownership can offer unique stability and potential for robust revenue growth.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)24%22.3%
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%
Sineng ElectricLtd (SZSE:300827)36.5%39.8%
Ningbo Deye Technology Group (SHSE:605117)24.8%28.5%
Arctech Solar Holding (SHSE:688408)38.6%25.8%
Anhui Huaheng Biotechnology (SHSE:688639)31.5%28.4%
Fujian Wanchen Biotechnology Group (SZSE:300972)14.9%75.9%
UTour Group (SZSE:002707)24%33.1%

Click here to see the full list of 366 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Shandong Donghong Pipe Industry (SHSE:603856)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shandong Donghong Pipe Industry Co., Ltd. is a company specializing in the manufacture and sale of various plastic pipes and fittings, with a market capitalization of approximately CN¥2.57 billion.

Operations: The revenue for the company is derived primarily from the manufacture and sale of various plastic pipes and fittings.

Insider Ownership: 12.3%

Revenue Growth Forecast: 19.3% p.a.

Shandong Donghong Pipe Industry, a growth company with high insider ownership in China, exhibits a strong financial trajectory. Recent earnings reports show modest year-over-year increases in sales and net income. Despite a slightly unstable dividend track record and low forecasted return on equity of 12.9% in three years, the company's earnings are expected to grow significantly at 23.6% per year, outpacing the Chinese market average of 22.3%. This growth is supported by its current valuation at 58.6% below estimated fair value, indicating potential upside for investors focused on value and growth metrics.

SHSE:603856 Earnings and Revenue Growth as at Jun 2024

Fujian Boss Software (SZSE:300525)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Fujian Boss Software Corp., operating in China, specializes in providing software products and services with a market capitalization of approximately CN¥9.47 billion.

Operations: The company generates its revenue primarily from the sale of software products and services.

Insider Ownership: 26.5%

Revenue Growth Forecast: 23% p.a.

Fujian Boss Software, a Chinese growth company with significant insider ownership, is poised for robust expansion. The firm's earnings are forecasted to increase by 24.8% annually, surpassing the broader Chinese market's growth. Additionally, Fujian Boss Software trades at a favorable price-to-earnings ratio of 28.8x, below the IT industry average of 45.2x, suggesting good value relative to its peers. Recent activities include a substantial share buyback and consistent dividend payouts, reinforcing its commitment to shareholder returns despite a low forecasted return on equity of 16.8%.

SZSE:300525 Ownership Breakdown as at Jun 2024

Jiangyin Pivot Automotive Products (SZSE:301181)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Jiangyin Pivot Automotive Products Co., Ltd. is a company that specializes in the manufacturing of automotive components, with a market capitalization of approximately CN¥2.56 billion.

Operations: The company generates CN¥558.06 million from its automobile nylon pipes and connectors segment.

Insider Ownership: 28.9%

Revenue Growth Forecast: 19.4% p.a.

Jiangyin Pivot Automotive Products, a Chinese automotive company with high insider ownership, shows promising growth prospects. The company's revenue is expected to grow at 19.4% annually, outpacing the Chinese market forecast of 13.8%. Additionally, its earnings are projected to increase by 22.36% per year over the next three years, slightly above the national average of 22.3%. Despite a recent dividend decrease and unstable dividend track record, Jiangyin Pivot trades at a favorable price-to-earnings ratio of 17x compared to the broader market's 28.5x, indicating good value relative to its peers and industry standards.

SZSE:301181 Ownership Breakdown as at Jun 2024

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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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