Top Chinese Growth Stocks With High Insider Ownership August 2024

Amidst a backdrop of mixed economic signals, Chinese equities have shown resilience, with the Shanghai Composite Index and blue chip CSI 300 both posting gains. As investor sentiment remains cautiously optimistic, growth stocks with high insider ownership stand out as compelling opportunities in the current market landscape. In this article, we will explore three top Chinese growth stocks that not only demonstrate strong potential but also benefit from significant insider ownership—an indicator often associated with confidence in long-term performance.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	27.9%
Arctech Solar Holding (SHSE:688408)	38.7%	26.9%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Ningbo Deye Technology Group (SHSE:605117)	23.4%	29.2%
Suzhou Sunmun Technology (SZSE:300522)	36.5%	63.4%
Eoptolink Technology (SZSE:300502)	26.7%	39.4%
Sineng ElectricLtd (SZSE:300827)	36.5%	40.1%
UTour Group (SZSE:002707)	23%	36.1%

Click here to see the full list of 372 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Dongguan Mentech Optical & Magnetic (SZSE:002902)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Dongguan Mentech Optical & Magnetic Co., Ltd. operates in the optical and magnetic components industry with a market cap of CN¥4.44 billion.

Operations: Dongguan Mentech Optical & Magnetic generates revenue from its optical and magnetic components business, with a market cap of CN¥4.44 billion.

Insider Ownership: 34.7%

Dongguan Mentech Optical & Magnetic is forecast to achieve substantial revenue growth of 30.8% per year, outpacing the Chinese market's average of 13.4%. The company is expected to become profitable within three years, with earnings projected to grow by 140.82% annually. Despite recent shareholder dilution, high insider ownership suggests strong internal confidence in its future prospects. However, the stock has experienced significant volatility over the past three months.

• Click here to discover the nuances of Dongguan Mentech Optical & Magnetic with our detailed analytical future growth report.
• Upon reviewing our latest valuation report, Dongguan Mentech Optical & Magnetic's share price might be too optimistic.

Thunder Software TechnologyLtd (SZSE:300496)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Thunder Software Technology Co., Ltd. develops operating-system products for markets in China, Europe, the United States, Japan, and internationally with a market cap of CN¥18.73 billion.

Operations: Thunder Software Technology Co., Ltd. generates revenue from operating-system products across China, Europe, the United States, Japan, and other international markets.

Insider Ownership: 27.7%

Thunder Software Technology Ltd. is forecast to see significant earnings growth of 24.56% annually over the next three years, outpacing the Chinese market's average of 21.9%. Despite a recent decline in profit margins from 14.3% to 7.4%, analysts expect its revenue to grow by 16.4% per year, faster than the market's average of 13.4%. Recent board changes include electing Huang Feng and Liu Shuo as independent directors, reflecting ongoing governance adjustments.

• Dive into the specifics of Thunder Software TechnologyLtd here with our thorough growth forecast report.
• The valuation report we've compiled suggests that Thunder Software TechnologyLtd's current price could be quite moderate.

Advanced Fiber Resources (Zhuhai) (SZSE:300620)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Advanced Fiber Resources (Zhuhai), Ltd. designs and manufactures passive optical components in China and internationally, with a market cap of CN¥8.24 billion.

Operations: The company's revenue segments include the design and manufacture of passive optical components for both domestic and international markets.

Insider Ownership: 32%

Advanced Fiber Resources (Zhuhai) is positioned for robust growth, with earnings projected to rise 40.24% annually, significantly outpacing the Chinese market's average of 21.9%. Revenue is also expected to grow at a strong rate of 24.2% per year, surpassing the market's average growth rate of 13.4%. However, profit margins have declined from 16.8% to 7.1%, partly due to large one-off items impacting recent financial results.

• Delve into the full analysis future growth report here for a deeper understanding of Advanced Fiber Resources (Zhuhai).
• Our valuation report unveils the possibility Advanced Fiber Resources (Zhuhai)'s shares may be trading at a premium.

Next Steps

• Dive into all 372 of the Fast Growing Chinese Companies With High Insider Ownership we have identified here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Interested In Other Possibilities?

• 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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