Stock Analysis

Unveiling Three Elite Growth Companies With High Insider Ownership On The Chinese Exchange

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Amidst a backdrop of recent rate cuts by the People's Bank of China and a general downturn in Chinese equities, investors are keenly observing market dynamics for robust investment opportunities. In this climate, growth companies with high insider ownership on the Chinese exchange may offer compelling narratives, as such structures can signal strong confidence from those most familiar with the companies' potential and strategic direction.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings 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%
KEBODA TECHNOLOGY (SHSE:603786)12.8%25.1%
Arctech Solar Holding (SHSE:688408)38.7%28.4%
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 363 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Genew TechnologiesLtd (SHSE:688418)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Genew Technologies Co., Ltd. specializes in the research, development, production, and sale of communication and network products globally, with a market capitalization of approximately CN¥2.97 billion.

Operations: The company generates revenue primarily through the research, development, production, and sale of communication and network products on a global scale.

Insider Ownership: 16.7%

Genew TechnologiesLtd, a growth-oriented company in China, has shown promising financial trends with revenue increasing from CNY 528.25 million to CNY 884.41 million year-over-year and reducing its net loss significantly from CNY 214.88 million to CNY 86.56 million. Despite a highly volatile share price recently, the company's earnings are projected to grow substantially at 123.78% per year, outpacing the Chinese market's average growth rate of 13.6%. This performance is underpinned by strong insider ownership but tempered by a short cash runway and no substantial insider buying or selling in the past three months.

SHSE:688418 Ownership Breakdown as at Jul 2024

Harbin Boshi Automation (SZSE:002698)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Harbin Boshi Automation Co., Ltd. specializes in the research, development, production, and sale of intelligent manufacturing equipment and industrial robots across China, with a market capitalization of approximately CN¥11.84 billion.

Operations: The company primarily generates its revenue from the sale of intelligent manufacturing systems and industrial robotics within China.

Insider Ownership: 37.3%

Harbin Boshi Automation, a Chinese automation company, exhibits strong growth prospects with its revenue and earnings forecasted to grow at 20.4% and 21.94% per year, respectively, outperforming the broader Chinese market. Despite a price-to-earnings ratio below market average at 22.2x, concerns arise from its low Return on Equity projection of 19.9% and dividends that are not well covered by free cash flows. Recent amendments to the company's bylaws and consistent dividend affirmations underscore active management involvement.

SZSE:002698 Earnings and Revenue Growth as at Jul 2024

Landai Technology Group (SZSE:002765)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Landai Technology Group Corp., Ltd. focuses on the R&D, production, and sale of power transmission assemblies, transmission parts, and die-casting products for the automotive and machinery sectors in China, with a market capitalization of approximately CN¥3.05 billion.

Operations: The company generates revenue from the sale of power transmission assemblies, transmission parts, and die-casting products across automotive, textile machinery, and general machinery markets.

Insider Ownership: 31.8%

Landai Technology Group, based in China, is on track to become profitable within three years, reflecting an anticipated above-market earnings growth. Despite recent setbacks like being dropped from the S&P Global BMI Index, the company's strong insider ownership aligns with its growth trajectory. However, its projected revenue growth rate of 17.6% per year, although above the Chinese market average, falls short of a more robust 20% target. Additionally, a forecasted low Return on Equity at 8.5% tempers expectations slightly.

SZSE:002765 Earnings and Revenue Growth as at Jul 2024

Summing It All Up

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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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