Shanghai Milkground Food Tech and Two Other High-Growth Stocks in China’s Insider Shareholding

Amid global economic turmoil, Chinese stocks have shown resilience, supported by strong export data despite domestic challenges. This opens the door for investors to look at growth companies with high insider ownership on the Chinese stock exchange. High insider ownership can often signal strong confidence in the company’s future from those who know it best.

Top 10 Growing Companies with High Insider Ownership in China

Click here to see the full list of 367 stocks in our screen of fast-growing Chinese companies with high insider ownership.

Below, we highlight some of our favorites from our exclusive screener.

Simply Wall St Growth Assessment: ★★★★☆☆

Preview: Shanghai Milkground Food Tech Co., Ltd specializes in the production and distribution of cheese and liquid dairy products for consumer and industrial markets in China, with a market capitalization of approximately CNY 6.75 billion.

Operations: The Company’s revenues are primarily derived from the sale of cheese and liquid dairy products to consumer and industrial markets in China.

Insider ownership: 16.6%

Earnings growth forecast: 36.6% per year

Despite a decline in Q1 2024 revenue to CNY949.77 million from CNY1,022.74 million year-on-year, Shanghai Milkground Food Tech posted a notable increase in net profit to CNY41.3 million from CNY24.2 million. The company is trading at a significant discount to its estimated fair value, and analysts are forecasting a substantial price increase. Expected earnings growth is ahead of the Chinese market average, although revenue growth forecasts are slightly below industry leaders.

Simply Wall St Growth Assessment: ★★★★★★

Preview: Ningbo Sunrise Elc Technology Co., Ltd specializes in manufacturing and selling precision components, with a market capitalization of approximately CNY 6.91 billion.

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Operations: The company generates revenue through the manufacturing and sale of precision components.

Insider ownership: 24.3%

Earnings growth forecast: 27.7% per year

Ningbo Sunrise Elc Technology Ltd, with substantial insider ownership, is poised for robust growth. Earnings have jumped 21.6% over the past year and are expected to grow 27.7% annually, outpacing the Chinese market’s 22.2%. Revenue growth also remains strong at 27.2% annually, significantly above the market average of 13.7%. Despite these positives, dividend coverage by free cash flow is weak. Recent strategic share buybacks underscore confidence in future performance and commitment to shareholder value.

Simply Wall St Growth Assessment: ★★★★★☆

Preview: Lucky Harvest Co., Ltd. specializes in the research, development, production and sales of precision stamping dies and structural metal parts in China, with a market capitalization of approximately CNY 6.44 billion.

Operations: The company generates revenue primarily through the development and manufacturing of precision stamping dies and structural metal components.

Insider ownership: 33.9%

Earnings growth forecast: 26.4% per year

Lucky Harvest, which has strong insider ownership, trades at an attractive price-to-earnings ratio of 14.4x, well below the Chinese market average. Its earnings have grown 46.4% over the past year and are expected to grow 26.4% per year over the next three years, beating market expectations. Revenue growth is also robust, at 21.5% per year. However, the sustainability of its dividends is questionable as they are not well covered by free cash flow despite recent dividend increases.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. This is not 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 focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned. The analysis only considers shares held directly by insiders. It does not include shares held indirectly through other vehicles such as corporations and/or trusts. All revenue and earnings growth rates quoted are expressed in terms of annualized growth rates (per year) over 1 to 3 years.

Companies mentioned in this article include SHSE: 600882, SZSE: 002937 and SZSE: 002965.

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