Three Undervalued Asian Growth Stocks Backed by Insider Confidence

In volatile markets, investors often seek reassurance from those who know a company best: its insiders. High insider ownership and buying activity signal confidence in a firm's future, particularly when paired with strong earnings growth and undervaluation. Three Asian companies—Zhejiang Leapmotor Technology (SEHK:9863), Quzhou Xin'an Development (SHSE:600208), and iSoftStone Information Technology (SZSE:301236)—exemplify this combination. Their insider-backed optimism, coupled with compelling growth metrics, makes them compelling picks for long-term investors.

1. Zhejiang Leapmotor Technology (SEHK:9863): Electric Vehicles Driven by Insider Confidence

Insider Ownership: 15.6% (June 2025), with founders and insiders collectively holding 30% of equity.
Earnings Growth: While exact figures aren't specified, Leapmotor's inclusion in the Top 10 Growth Companies in Asia underscores its high-growth trajectory. Its October 2023 market cap of CNY 10 billion suggests undervaluation relative to peers in the competitive EV sector.
Why It's a Buy: Insiders have shown more buying than selling in the past three months, a clear vote of confidence. As China's EV market expands—projected to grow at 14% annually through 2027—Leapmotor's focus on affordable, high-quality vehicles positions it to capitalize.

2. Quzhou Xin'an Development (SHSE:600208): Chemical Growth with a Margin of Safety

Insider Ownership: 17.4% (June 2025), placing it among the Fast Growing Asian Companies With High Insider Ownership.
Earnings Growth: A blistering 46.7% annual growth forecast reflects its dominance in specialty chemicals.
Undervaluation: Despite its growth, the stock trades at a price-to-earnings (P/E) ratio of 21x, sharply below the market's 37.6x multiple. While debt coverage poses a risk, its strong cash flows and expanding margins offer a margin of safety.
Why It's a Buy: Insider ownership here isn't just about shares—it's about alignment with shareholders. At current valuations, Xin'an offers a rare blend of growth and affordability.

3. iSoftStone Information Technology (SZSE:301236): Tech Growth Rooted in Founder Confidence

Insider Ownership: 23.8% (Q2 2025), the highest among the trio, signaling founder-led conviction.
Earnings Growth: A 37.2% annual growth forecast is underpinned by its cloud and IT solutions, critical for China's digital transformation.
Undervaluation: With a market cap of CNY 51.24 billion, the stock trades at a 25% discount to its fair value. A recent CNY 3.38 billion private placement highlights management's commitment to scaling operations.
Why It's a Buy: While insider buying activity is “insufficient to determine trends” in the past three months, the sheer scale of founder ownership—23.8%—speaks volumes. This is a stock poised to benefit from China's tech boom.

Why These Stocks Are a Bargain Now

1. Insider Backing: High ownership and buying activity reduce agency risks, aligning management incentives with shareholders.
2. Undervaluation: All three trade below fair value, offering a cushion against market dips.
3. Growth Catalysts: Each leverages secular trends—EVs, chemicals, and cloud tech—that will outlast short-term volatility.

Investment Strategy

• Entry Points: Use dollar-cost averaging to mitigate timing risk.
• Watch Risks: Xin'an's debt and iSoftStone's regulatory hurdles require monitoring.
• Hold for the Long Term: These are not trading plays but foundational holdings for growth portfolios.

Conclusion

In a market rife with uncertainty, insider confidence is a rare compass. Zhejiang Leapmotor, Xin'an, and iSoftStone aren't just growing—they're being bolstered by the very people who built them. For investors willing to look beyond headlines, these stocks offer a chance to buy quality at a discount. As markets stabilize, the alignment of insider conviction and undervaluation will likely reward patience.

The time to act is now.