Amidst a backdrop of global market fluctuations, Chinese stocks have shown resilience, with significant gains in major indices driven by optimism surrounding Beijing's supportive measures. This article highlights three growth companies in China that not only demonstrate strong performance but also boast high insider ownership, reflecting a robust vote of confidence from those closest to the business.
Click here to see the full list of 386 stocks from our Fast Growing Chinese Companies With High Insider Ownership screener.
We'll examine a selection from our screener results.
Simply Wall St Growth Rating: ★★★★★★
Overview: Huayi Brothers Media Corporation is an entertainment media company operating in China and internationally, with a market cap of CN¥7.96 billion.
Operations: The company's revenue segments include CN¥603.85 million from Film and TV Entertainment, CN¥3.77 million from Brand Licensing and Live Entertainment, and CN¥0.74 million from Internet Entertainment.
Huayi Brothers Media, despite recent removal from the FTSE All-World Index, shows promising growth potential with earnings improving to a net income of CNY 24.72 million for H1 2024 from a loss previously. Revenue forecasts suggest a robust annual growth rate of 37.6%, outpacing the broader Chinese market. However, the stock has been highly volatile recently and there is no significant insider trading activity reported in the last three months.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Zhejiang Jolly Pharmaceutical Co., LTD is involved in the research, production, and marketing of Chinese medicinal products both domestically and internationally, with a market cap of CN¥10.84 billion.
Operations: Zhejiang Jolly Pharmaceutical Co., LTD generates revenue through its research, production, and marketing of Chinese medicinal products across domestic and international markets.
Zhejiang Jolly PharmaceuticalLTD demonstrates strong growth potential, with revenue and earnings forecasted to grow at 22% and 20.8% annually, respectively. The recent share buyback program of CNY 203.97 million underscores management's confidence in the company's future, despite a dividend not well covered by free cash flows. The company trades at a favorable price-to-earnings ratio of 22.5x compared to the broader Chinese market, indicating good relative value amidst high insider ownership stability.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Tongyu Heavy Industry Co., Ltd. focuses on the research, development, manufacture, and sale of forgings and castings, with a market cap of CN¥9.27 billion.
Operations: The company generates revenue primarily from its General Equipment Manufacturing segment, amounting to CN¥5.12 billion.
Tongyu Heavy Industry is forecasted to achieve significant earnings growth of 88.89% annually, surpassing the broader Chinese market's expectations. Despite trading at a value significantly below its estimated fair value, recent financials show a decline in revenue and net income compared to the previous year, with net income dropping from CNY 183.07 million to CNY 40.57 million. The company's dividend yield of 1.05% is not well covered by earnings or cash flows, indicating potential financial challenges ahead.
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.