Stock Analysis
Discover 3 Chinese Growth Stocks With Strong Insider Ownership
Reviewed by Simply Wall St
Amidst a backdrop of comprehensive support measures from Beijing, Chinese stocks have shown significant gains, with the Shanghai Composite Index and CSI 300 Index both experiencing notable increases. This optimism in the market highlights the importance of identifying growth companies with strong insider ownership, as such attributes can often signal confidence in a company's potential to thrive despite broader economic challenges.
Top 10 Growth Companies With High Insider Ownership In China
| Name | Insider Ownership | Earnings Growth |
| ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130) | 17.9% | 28.7% |
| Western Regions Tourism DevelopmentLtd (SZSE:300859) | 13.9% | 39.2% |
| Arctech Solar Holding (SHSE:688408) | 37.8% | 29.6% |
| Cubic Sensor and InstrumentLtd (SHSE:688665) | 10.1% | 38.9% |
| Quick Intelligent EquipmentLtd (SHSE:603203) | 34.4% | 33.1% |
| Suzhou Sunmun Technology (SZSE:300522) | 36.5% | 67.5% |
| Sineng ElectricLtd (SZSE:300827) | 36.5% | 41.7% |
| UTour Group (SZSE:002707) | 22.8% | 28.7% |
| BIWIN Storage Technology (SHSE:688525) | 18.8% | 116.8% |
| Offcn Education Technology (SZSE:002607) | 25.1% | 75.7% |
Let's take a closer look at a couple of our picks from the screened companies.
Dalian BIO-CHEM (SHSE:603360)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Dalian BIO-CHEM Company Limited produces and sells bactericides, antiseptics, and fungicides for various industrial applications across Europe, the Americas, the Middle East, Africa, and Asia with a market cap of CN¥8.47 billion.
Operations: The company's revenue primarily comes from its Chemical Raw Materials and Chemical Products Manufacturing segment, which generated CN¥1.08 billion.
Insider Ownership: 30.9%
Earnings Growth Forecast: 28.0% p.a.
Dalian BIO-CHEM demonstrates potential as a growth company with expected annual earnings growth of 28% over the next three years, outpacing the Chinese market. Revenue is also projected to grow at 21.5% annually, faster than both the market and its peers. Despite a lower-than-market price-to-earnings ratio of 27.9x, recent earnings showed a decline in net income to CNY 164.55 million for H1 2024, highlighting challenges amidst its growth trajectory.
- Click here to discover the nuances of Dalian BIO-CHEM with our detailed analytical future growth report.
- Our comprehensive valuation report raises the possibility that Dalian BIO-CHEM is priced higher than what may be justified by its financials.
PNC Process Systems (SHSE:603690)
Simply Wall St Growth Rating: ★★★★★☆
Overview: PNC Process Systems Co., Ltd. is engaged in the research, development, production, and sale of semiconductor process equipment, system integration and support equipment, and component materials in China with a market cap of CN¥9.42 billion.
Operations: The company's revenue segments include semiconductor process equipment, system integration and support equipment, and component materials in China.
Insider Ownership: 34.1%
Earnings Growth Forecast: 31.3% p.a.
PNC Process Systems is positioned for growth with projected annual earnings and revenue increases of 31.3% and 21.9%, respectively, surpassing market averages. Despite a recent decline in net income to CNY 73.74 million for H1 2024, the company's price-to-earnings ratio of 27.5x remains attractive compared to the market's higher average. The recent share buyback program aims to enhance employee incentives and corporate cohesion, potentially supporting long-term development despite current financial challenges.
- Delve into the full analysis future growth report here for a deeper understanding of PNC Process Systems.
- The analysis detailed in our PNC Process Systems valuation report hints at an inflated share price compared to its estimated value.
Wondershare Technology Group (SZSE:300624)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Wondershare Technology Group Co., Ltd. develops application software products in China and internationally, with a market cap of CN¥13.13 billion.
Operations: Wondershare's revenue segments include the development and sale of application software products both domestically and internationally.
Insider Ownership: 15.2%
Earnings Growth Forecast: 31.8% p.a.
Wondershare Technology Group demonstrates potential for growth, with earnings forecasted to increase significantly at 31.8% annually, outpacing the Chinese market average. Despite recent volatility in share price and a decline in net income to CNY 24.49 million for H1 2024, the company is actively engaging in strategic initiatives such as a CNY 40 million share repurchase program and product innovations like PDFelement 11 and Repairit V6.0, aimed at boosting productivity and enhancing video repair capabilities.
- Unlock comprehensive insights into our analysis of Wondershare Technology Group stock in this growth report.
- Our valuation report unveils the possibility Wondershare Technology Group's shares may be trading at a premium.
Seize The Opportunity
- Explore the 378 names from our Fast Growing Chinese Companies With High Insider Ownership screener here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
Want To Explore Some Alternatives?
- 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 SHSE:603690
PNC Process Systems
Researches, develops, produces, and sells semiconductor process equipment, system integration and support equipment, and component materials in China.
