As Chinese equities face challenges amid fading optimism about Beijing's stimulus measures, the Shanghai Composite Index and the blue-chip CSI 300 have both experienced notable declines. Despite these headwinds, growth companies with high insider ownership can offer unique insights and potential resilience in such a market environment.
Click here to see the full list of 383 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.
Let's explore several standout options from the results in the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Runben Biotechnology Co., Ltd. focuses on the research, production, and sale of mosquito repellent products, baby care products, and essential oil products, with a market cap of CN¥9.64 billion.
Operations: The company generates revenue from its Personal Products segment, amounting to CN¥1.20 billion.
Runben Biotechnology demonstrates strong growth potential with recent earnings increasing by 48.7% over the past year, and revenue for the half-year rising to CNY 744.03 million from CNY 579.15 million previously. Despite an unstable dividend track record, its forecasted revenue growth of 24.2% per year surpasses the market average of 13.2%. However, its expected earnings growth of 22.2% per year is slightly below the Chinese market's anticipated rate of 23.4%.
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¥4.87 billion.
Operations: The company's revenue segments include Power Adapter (CN¥178.67 million), Magnetic Components (CN¥847.96 million), Optical Communication Products (CN¥477.45 million), and Communication Power Supply System Equipment (CN¥83.67 million).
Dongguan Mentech Optical & Magnetic is poised for significant growth, with earnings projected to increase by 154.37% annually and revenue expected to grow 40.2% per year, outpacing the Chinese market average of 13.2%. Despite past shareholder dilution and a recent net loss of CNY 79.2 million for the half-year, insider ownership remains stable without substantial buying or selling in the last three months. Recent developments include its addition to the S&P Global BMI Index and a strategic stake acquisition by Shenzhen Jiayi Asset Management Co., Ltd., highlighting 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 sale of aluminum profiles in China with a market cap of CN¥4.02 billion.
Operations: The company's revenue is primarily derived from Industrial Aluminum Profiles (CN¥2.05 billion), Aluminum Profiles for Construction (CN¥2.24 billion), Automobile Lightweight Aluminum Material (CN¥1.57 billion), and System Doors and Windows Sales (CN¥553.24 million).
Guangdong Haomei New Materials showcases promising growth potential, with earnings expected to grow significantly at 23.95% annually, surpassing the Chinese market average. Despite past shareholder dilution and low forecasted return on equity of 10.7%, its price-to-earnings ratio of 16.9x suggests good value compared to the broader CN market. Recent activities include a completed share buyback for CNY 45 million and interim dividends, indicating proactive capital management amidst improving profitability metrics.
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.