Unveiling High Insider-Owned Growth Stocks On The Chinese Exchange July 2024

As of July 2024, the Chinese stock market has shown resilience with notable gains in major indices, buoyed by strong export figures that offset concerns about domestic demand and deflationary pressures. In this context, exploring growth companies with high insider ownership on the Chinese exchange could offer valuable insights, as these firms often exhibit aligned interests between shareholders and management, potentially enhancing stability and long-term value creation in a fluctuating economic environment.

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%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)	24%	22.3%
Anhui Huaheng Biotechnology (SHSE:688639)	31.4%	28.4%
Arctech Solar Holding (SHSE:688408)	38.7%	25.4%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
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 364 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Shenzhen Hopewind Electric (SHSE:603063)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen Hopewind Electric Co., Ltd. is a company that specializes in the research, development, manufacturing, sales, and service of energy and electric drive products with a market capitalization of approximately CN¥6.49 billion.

Operations: The company generates revenue primarily through the research, development, manufacturing, and sales of energy and electric drive products.

Insider Ownership: 28.9%

Shenzhen Hopewind Electric, a growth-oriented company in China, is expected to see its revenue increase by 20.8% annually, outpacing the broader Chinese market's growth rate. While its earnings have surged by 72.1% over the past year and are projected to grow at 23.2% per year, concerns linger about dividend sustainability as it is poorly covered by free cash flows. The firm trades at a significant discount of 36.9% below estimated fair value, suggesting potential undervaluation relative to peers despite recent declines in quarterly net income and earnings per share as reported in April 2024.

• Click here and access our complete growth analysis report to understand the dynamics of Shenzhen Hopewind Electric.
• In light of our recent valuation report, it seems possible that Shenzhen Hopewind Electric is trading behind its estimated value.

Changsha Jingjia Microelectronics (SZSE:300474)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Changsha Jingjia Microelectronics Co., Ltd. is a company that specializes in the development and manufacturing of high-performance microelectronic components, with a market capitalization of approximately CN¥29.03 billion.

Operations: The revenue segments information for the company is not provided in the text.

Insider Ownership: 39%

Changsha Jingjia Microelectronics, a Chinese growth company with high insider ownership, has shown promising financial dynamics despite some challenges. Recently, the firm reported a substantial improvement in quarterly sales to CNY 108.38 million from CNY 65.18 million year-over-year and reduced its net loss significantly to CNY 11.54 million from CNY 70.68 million. Expected annual revenue is set to grow at 34% per year, outstripping the market's average of 13.7%. However, its return on equity is forecasted low at around 10% in three years' time, and profit margins have decreased compared to last year's figures.

• Click to explore a detailed breakdown of our findings in Changsha Jingjia Microelectronics' earnings growth report.
• According our valuation report, there's an indication that Changsha Jingjia Microelectronics' share price might be on the expensive side.

Wuhan Jingce Electronic GroupLtd (SZSE:300567)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Wuhan Jingce Electronic Group Co., Ltd. focuses on researching, developing, producing, and selling display, semiconductor, and new energy detection systems with a market capitalization of approximately CN¥16.59 billion.

Operations: The company generates revenue primarily from its electron product segment, which brought in CN¥2.25 billion.

Insider Ownership: 37.5%

Wuhan Jingce Electronic Group Ltd, a Chinese growth company with high insider ownership, faces challenges despite its aggressive share repurchase strategy. Recently, the company reported a significant revenue drop to CNY 418.01 million and shifted to a net loss of CNY 15.93 million from a previous net income, reflecting volatility in its financial performance. However, it anticipates robust future earnings growth at an annual rate of 39.2%, outpacing the broader Chinese market forecast of 22.2%. Recent corporate actions include adjustments in share repurchase goals and amendments to company bylaws aimed at stabilizing operations.

• Navigate through the intricacies of Wuhan Jingce Electronic GroupLtd with our comprehensive analyst estimates report here.
• Our comprehensive valuation report raises the possibility that Wuhan Jingce Electronic GroupLtd is priced higher than what may be justified by its financials.

Next Steps

• Reveal the 364 hidden gems among our Fast Growing Chinese Companies With High Insider Ownership screener with a single click here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Curious About Other Options?

• 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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