Insider-Owned Growth Giants On The Chinese Exchange In July 2024

As of July 2024, China's stock market is grappling with the implications of persistent manufacturing slowdowns, as evidenced by recent underwhelming PMI data. This backdrop sets a nuanced stage for evaluating growth companies with high insider ownership on the Chinese exchanges. In such an economic climate, companies with substantial insider ownership can be particularly compelling. These firms often benefit from aligned interests between shareholders and management, potentially leading to more resilient performance in challenging times.

Top 10 Growth Companies With High Insider Ownership In China

Name	Insider Ownership	Earnings Growth
ShenZhen Woer Heat-Shrinkable MaterialLtd (SZSE:002130)	19%	27.9%
Ningbo Sunrise Elc TechnologyLtd (SZSE:002937)	24.3%	27.7%
Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)	24%	22.3%
Anhui Huaheng Biotechnology (SHSE:688639)	31.4%	28.4%
Cubic Sensor and InstrumentLtd (SHSE:688665)	10.1%	34.3%
KEBODA TECHNOLOGY (SHSE:603786)	12.8%	25.1%
Arctech Solar Holding (SHSE:688408)	26%	25.8%
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 365 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.

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

Shenzhen VMAX New Energy (SHSE:688612)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen VMAX New Energy Co., Ltd. specializes in the research, development, production, and sale of power electronics and power transmission products both domestically and internationally, with a market capitalization of CN¥11.07 billion.

Operations: The company generates revenue primarily from the sale of electric equipment, totaling CN¥5.85 billion.

Insider Ownership: 39.8%

Shenzhen VMAX New Energy, a growth-oriented firm in China, exhibits substantial revenue and earnings expansion with forecasts indicating an annual increase of 22.3% and 23.89%, respectively, outpacing the Chinese market averages. Despite this promising growth trajectory and a competitive price-to-earnings ratio of 21x below the market average, the company's return on equity is projected to remain low at 19.4%. Additionally, its dividend coverage by free cash flows raises sustainability concerns. Recent financial results show a significant year-over-year improvement in sales and net income for Q1 2024, affirming its growth potential amidst operational challenges.

• Click here and access our complete growth analysis report to understand the dynamics of Shenzhen VMAX New Energy.
• Our valuation report unveils the possibility Shenzhen VMAX New Energy's shares may be trading at a premium.

Jiangsu Azure (SZSE:002245)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Jiangsu Azure Corporation operates in China, focusing on lithium batteries, LED chips, and metal logistics and distribution with a market capitalization of approximately CN¥9.10 billion.

Operations: The company's revenue is derived from three primary sectors: lithium batteries, LED chips, and metal logistics and distribution.

Insider Ownership: 15.3%

Jiangsu Azure, a Chinese growth company with high insider ownership, reported a substantial increase in Q1 2024 sales to CNY 1.43 billion and reversed its previous losses, posting a net income of CNY 70.67 million. Despite recent dividend cuts, the firm's revenue and earnings are expected to grow annually by 16.6% and 37.7%, respectively—both rates surpassing market averages. However, its forecasted return on equity remains low at 8.6%, suggesting potential challenges in effectively leveraging shareholder equity for profit.

• Take a closer look at Jiangsu Azure's potential here in our earnings growth report.
• Our valuation report here indicates Jiangsu Azure may be overvalued.

Lepu Medical Technology (Beijing) (SZSE:300003)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lepu Medical Technology (Beijing) Co., Ltd. is a healthcare company focused on developing, manufacturing, and selling medical devices, pharmaceuticals, and healthcare services with a market cap of CN¥25.88 billion.

Operations: The revenue for the company is segmented into medical devices, pharmaceuticals, and healthcare services.

Insider Ownership: 13.1%

Lepu Medical Technology, a Chinese growth company with significant insider ownership, posted a decline in Q1 2024 sales and net income, reporting CNY 1.92 billion and CNY 481.87 million respectively. Despite recent dividend reductions, the firm is valued attractively with a P/E ratio of 22.6x below the market average and is anticipated to see earnings grow by 25.7% annually over the next three years, outpacing the CN market's forecast of 22.1%. However, its return on equity is expected to remain low at 11.8%.

• Click here to discover the nuances of Lepu Medical Technology (Beijing) with our detailed analytical future growth report.
• Upon reviewing our latest valuation report, Lepu Medical Technology (Beijing)'s share price might be too pessimistic.

Turning Ideas Into Actions

• Investigate our full lineup of 365 Fast Growing Chinese Companies With High Insider Ownership right here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Contemplating Other Strategies?

• 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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