3 Chinese Growth Stocks That Insiders Own With Profits Soaring Up to 53%

Chinese stocks have recently fallen on weak inflation data, which has raised concerns about economic stability. Despite these challenges, growth stocks with high insider ownership can offer unique opportunities for investors, as they often benefit from strong insider ownership and the potential for significant earnings growth. In the current market environment, identifying stocks with strong insider ownership and promising earnings forecasts can be a strategic move. Here are three Chinese growth stocks with insider ownership that have seen earnings growth of up to 53%.

Top 10 High Insider Growth Companies in China

Click here to see the full list of 379 stocks in our China high-growth, high-ownership stock screener.

Let’s take a look at some of the standout options based on the scan results.

Simply Wall St Growth Rating: ★★★★★☆

Review: Shanghai OPM Biosciences Co., Ltd. provides cell culture media and CDMO services both in China and overseas, with a market capitalization of 3.10 billion Chinese yen.

Operations: The company’s revenue segments include cell culture media and CDMO services provided both domestically and internationally.

Internal property: 24.9%

Profit growth forecast: 53.9% per year

Shanghai OPM Biosciences, with a large share of insiders, is forecast to post a significant 53.9% annual profit growth over the next three years, outperforming the Chinese market average. Despite a recent decline in profit margin to 15.2%, revenue for the first half of 2024 rose to CNY143.61 million from CNY121.25 million last year. The company also repurchased shares worth CNY46.61 million, indicating confidence in its future prospects.

Simply Wall St Growth Rating: ★★★★★☆

Review: Weihai Guangtai Airport Equipment Co., Ltd is engaged in the production and sale of ground support and fire-fighting equipment in China and abroad, with a market capitalization of 4.66 billion Chinese yen.

Operations: Weihai Guangtai Airport Equipment Co., Ltd’s revenue segments include ground support equipment (CNY1.68 billion) and fire-fighting equipment (CNY0.92 billion).

Internal property: 17.1%

Profit growth forecast: 41.7% per year

Weihai Guangtai Airport Equipment Ltd. has a high level of insider ownership and is poised for significant growth, with profits set to increase by 41.7% annually, outperforming the Chinese market average. The latest half-year results show revenue rising to CNY1.28 billion from CNY1.07 billion and net income doubling to CNY107.39 million year-on-year, reflecting solid business performance despite a dividend that is not well covered by profits or free cash flow.

Simply Wall St Growth Rating: ★★★★★☆

Review: Chongqing Mas Sci.&Tech.Co.,Ltd. is engaged in providing security technology equipment and security information services in China. Its market capitalization is 3.17 billion Chinese yen.

Operations: Chongqing Mas Sci.&Tech.Co.Ltd’s revenue segments include security technology equipment and security information services in China.

Internal property: 21.8%

Profit growth forecast: 30.5% per year

Chongqing Mas Sci.&Tech.Co.Ltd. shows significant growth potential with a projected profit growth of 30.5% per year, exceeding China’s market average of 23%. The latest half-year results show revenue growth to CNY232.32 million year-on-year from CNY201.75 million, and net income increased to CNY32.21 million from CNY28.35 million. The company also announced a private placement of shares, aiming to raise up to CNY180 million, indicating strong insider confidence and future expansion plans.

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This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. Our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks 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. Please 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 of the stocks mentioned. The analysis only includes shares directly held by insiders. It does not include shares held indirectly through other entities such as corporate and/or trusts. All projected revenue and earnings growth rates are provided as annual growth rates over a 1-3 year period.

This article covers companies: SHSE:688293, SZSE:002111 and SZSE:300275.

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