Chinese Exchanges Feature 3 Growth Stocks With Strong Insider Ownership

In recent weeks, Chinese stocks have experienced a significant surge, buoyed by optimism surrounding Beijing's comprehensive support measures despite ongoing concerns about manufacturing activity. With the Shanghai Composite Index and CSI 300 Index posting substantial gains, investors are increasingly focusing on growth companies with strong insider ownership as potential opportunities in this evolving market landscape. In such an environment, companies that demonstrate robust growth potential and high levels of insider ownership can be particularly appealing due to the alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In China

Click here to see the full list of 378 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Shenzhen SEICHI Technologies (SHSE:688627)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen SEICHI Technologies Co., Ltd. specializes in the research, development, production, and sale of new display device testing equipment in China with a market cap of CN¥5.85 billion.

Operations: Shenzhen SEICHI Technologies Co., Ltd. generates revenue primarily through the research, development, production, and sale of new display device testing equipment in China.

Insider Ownership: 18.6%

Earnings Growth Forecast: 31.9% p.a.

Shenzhen SEICHI Technologies, recently added to both the S&P Global BMI Index and Shanghai Stock Exchange indices, reported strong half-year sales growth to CNY 361.44 million from CNY 246.75 million year-on-year. Despite a slight dip in earnings per share, the company's revenue and earnings are forecasted to grow significantly faster than the Chinese market at rates of 29.5% and 31.9% annually, respectively, although its return on equity is expected to remain low at 10.8%.

• Click here to discover the nuances of Shenzhen SEICHI Technologies with our detailed analytical future growth report.
• In light of our recent valuation report, it seems possible that Shenzhen SEICHI Technologies is trading beyond its estimated value.

Suzhou Recodeal Interconnect SystemLtd (SHSE:688800)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Suzhou Recodeal Interconnect System Co., Ltd is engaged in the development, production, and sale of connection systems and microwave components globally, with a market capitalization of CN¥5.39 billion.

Operations: The company generates revenue primarily from its Electric Equipment segment, which amounted to CN¥1.86 billion.

Insider Ownership: 38.5%

Earnings Growth Forecast: 35.6% p.a.

Suzhou Recodeal Interconnect System Ltd reported significant half-year sales growth to CNY 947.54 million from CNY 641.13 million year-on-year, with revenue forecasts indicating a robust annual increase of 24.3%, surpassing market expectations. Despite a decline in net income and profit margins, the company's earnings are projected to grow significantly at 35.6% annually over the next three years, although return on equity remains low at an anticipated 12.2%.

• Dive into the specifics of Suzhou Recodeal Interconnect SystemLtd here with our thorough growth forecast report.
• Our comprehensive valuation report raises the possibility that Suzhou Recodeal Interconnect SystemLtd is priced higher than what may be justified by its financials.

NSFOCUS Technologies Group (SZSE:300369)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: NSFOCUS Technologies Group Co., Ltd. offers Internet and application security services globally, with a market cap of CN¥7.29 billion.

Operations: The company generates revenue from the Information Security Industry segment, amounting to CN¥1.77 billion.

Insider Ownership: 10.2%

Earnings Growth Forecast: 130.9% p.a.

NSFOCUS Technologies Group shows potential for growth with earnings projected to increase significantly at 130.87% annually, despite recent volatility and being dropped from the FTSE All-World Index. Revenue growth is expected to surpass the Chinese market average, though it remains below 20% per year. The company reported a reduced net loss of CNY 254.64 million for H1 2024, reflecting improvement from the previous year's figures, but return on equity forecasts remain low at 4.8%.

• Navigate through the intricacies of NSFOCUS Technologies Group with our comprehensive analyst estimates report here.
• Our valuation report here indicates NSFOCUS Technologies Group may be undervalued.

Next Steps

• Gain an insight into the universe of 378 Fast Growing Chinese Companies With High Insider Ownership by clicking here.
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Ready For A Different Approach?

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• 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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