3 Chinese growth companies with high insider ownership to watch

As Chinese stocks face challenges and optimism over Beijing’s stimulus measures fades, both the Shanghai Composite Index and the blue-chip CSI 300 posted significant declines. Despite these headwinds, growth companies with high insider ownership can offer unique insights and potential resilience in such a market environment.

Top 10 growth companies with high insider ownership in China

Click here to see the full list of 383 stocks from our Fast-Growing Chinese Companies With High Insider Ownership screener.

Let’s explore some standout options based on the results in the screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Runben Biotechnology Co., Ltd. focuses on the research, production and sales of mosquito repellent products, baby care products and essential oil products with a market capitalization of CN¥9.64 billion.

Operations: The company generates revenue of CNY 1.20 billion in the Personal Products segment.

Insider Ownership: 33.1%

Earnings growth forecast: 22.2% pa

Runben Biotechnology has strong growth potential: its most recent profit rose 48.7% last year, and its half-year revenue rose to CNY744.03 million from CNY579.15 million last year. Despite an unstable dividend record, the forecast sales growth of 24.2% per year is above the market average of 13.2%. However, the expected profit growth of 22.2% per year is slightly below the expected rate of 23.4% for the Chinese market.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Dongguan Mentech Optical & Magnetic Co., Ltd. operates in the optical and magnetic components industry and has a market capitalization of CNY 4.87 billion.

Operations: The Company’s revenue segments include power supplies (CN¥178.67 million), magnetic components (CN¥847.96 million), optical communications products (CN¥477.45 million), and communications power system equipment (CN¥83.67 million). CN¥).

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Insider Ownership: 34.8%

Earnings growth forecast: 154.4% pa

Dongguan Mentech Optical & Magnetic is poised for significant growth, with profit expected to increase by 154.37% annually and sales to increase by 40.2% annually, which is above the Chinese market average of 13.2%. Despite past shareholder dilution and a recent half-year net loss of CNY79.2 million, insider ownership remains stable, with no significant buying or selling in the last three months. Recent developments include inclusion in the S&P Global BMI Index and a strategic stake acquisition by Shenzhen Jiayi Asset Management Co., Ltd., underscoring investor confidence in its future prospects.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangdong Haomei New Materials Co., Ltd is engaged in the research, development, manufacturing and sales of aluminum profiles in China with a market capitalization of CN¥4.02 billion.

Operations: The company’s revenue comes mainly from industrial aluminum profiles (CN¥2.05 billion), construction aluminum profiles (CN¥2.24 billion), automotive lightweight aluminum materials (CN¥1.57 billion), and sales of system doors and Windows (CN¥553.24 million). ).

Insider Ownership: 23.1%

Earnings growth forecast: 23.9% pa

Guangdong Haomei New Materials has promising growth potential. Revenues are expected to grow significantly by 23.95% per year, exceeding the Chinese market average. Despite past shareholder dilution and the low forecast return on equity of 10.7%, the price-to-earnings ratio of 16.9x suggests good value relative to the broader CN market. Recent activities include a completed CNY45 million share buyback and interim dividends, indicating proactive capital management with improving profitability metrics.

Key insights

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. The analysis only considers stocks that are directly owned by insiders. It does not include shares held indirectly through other vehicles such as corporate and/or trust companies. All forecast sales and profit growth rates shown are annualized (per year) growth rates over 1-3 years.

Companies covered in this article include SHSE:603193, SZSE:002902 and SZSE:002988.

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