Stock Analysis

Chinese Exchange Growth Companies With High Insider Ownership

SZSE:300355
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The Chinese stock market has recently faced challenges, with the Shanghai Composite Index and the blue-chip CSI 300 both experiencing declines due to weak inflation data. Despite these headwinds, certain growth companies in China with high insider ownership present intriguing opportunities for investors. In this article, we will explore three such companies listed on Chinese exchanges. High insider ownership often signals confidence from those closest to the company and can be a positive indicator of future performance.

Top 10 Growth Companies With High Insider Ownership In China

NameInsider OwnershipEarnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)18%28.7%
Jiayou International LogisticsLtd (SHSE:603871)22.6%24.6%
Western Regions Tourism DevelopmentLtd (SZSE:300859)13.9%39.2%
Arctech Solar Holding (SHSE:688408)38.6%29.9%
Quick Intelligent EquipmentLtd (SHSE:603203)34.4%33.1%
UTour Group (SZSE:002707)23%25.2%
Suzhou Sunmun Technology (SZSE:300522)36.5%67.5%
Sineng ElectricLtd (SZSE:300827)36.5%41.7%
BIWIN Storage Technology (SHSE:688525)18.8%116.8%
Offcn Education Technology (SZSE:002607)25.1%75.7%

Click here to see the full list of 380 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Guangdong Shenglu Telecommunication Tech (SZSE:002446)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Shenglu Telecommunication Tech, with a market cap of CN¥4.90 billion, operates in the telecommunications industry providing technology solutions and equipment.

Operations: The company's revenue segments (in millions of CN¥) are: Mobile Communication Antennas at CN¥1.20 billion, Base Station Antennas at CN¥800 million, and Microwave Antennas at CN¥500 million.

Insider Ownership: 16.3%

Revenue Growth Forecast: 36% p.a.

Guangdong Shenglu Telecommunication Tech. is a growth company with high insider ownership in China. Despite reporting a decline in half-year sales to CNY 562.86 million and net income to CNY 49.6 million, the company's revenue is forecasted to grow at 36% per year, outpacing the market average of 13.2%. Earnings are expected to grow by 71.44% annually, becoming profitable within three years, although its return on equity is projected to be low at 9.4%.

SZSE:002446 Ownership Breakdown as at Sep 2024
SZSE:002446 Ownership Breakdown as at Sep 2024

Shenzhen Envicool Technology (SZSE:002837)

Simply Wall St Growth Rating: ★★★★★★

Overview: Shenzhen Envicool Technology Co., Ltd. produces and sells temperature control solutions and products in China, with a market cap of CN¥14.90 billion.

Operations: The company's revenue segment includes Precision Temperature Control Energy Saving Equipment, generating CN¥4.00 billion.

Insider Ownership: 19.7%

Revenue Growth Forecast: 21.8% p.a.

Shenzhen Envicool Technology's earnings are forecast to grow significantly at 23.2% annually over the next three years, outpacing the market average. Recent half-year results show strong performance with sales reaching CNY 1.71 billion and net income doubling to CNY 183.47 million year-over-year. Despite trading well below estimated fair value, analysts expect a substantial stock price increase of nearly 40%. High insider ownership aligns management interests with shareholders, enhancing confidence in future growth prospects.

SZSE:002837 Ownership Breakdown as at Sep 2024
SZSE:002837 Ownership Breakdown as at Sep 2024

M-Grass Ecology And Environment (Group) (SZSE:300355)

Simply Wall St Growth Rating: ★★★★★☆

Overview: M-Grass Ecology And Environment (Group) Co., Ltd. operates in the ecological restoration and environmental protection industry with a market cap of CN¥3.75 billion.

Operations: M-Grass Ecology And Environment (Group) generates revenue in the ecological restoration and environmental protection industry, with a market cap of CN¥3.75 billion.

Insider Ownership: 24.4%

Revenue Growth Forecast: 42% p.a.

M-Grass Ecology And Environment (Group) is forecast to achieve significant annual earnings growth of 95.42% over the next three years, substantially outpacing the Chinese market average. Despite a recent decline in profit margins from 7.2% to 2.3%, its revenue is expected to grow at an impressive rate of 42% per year. High insider ownership aligns management interests with shareholders, although interest payments are not well covered by earnings and the dividend track record remains unstable.

SZSE:300355 Ownership Breakdown as at Sep 2024
SZSE:300355 Ownership Breakdown as at Sep 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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