As global markets react to expected interest rate cuts and economic indicators send mixed signals, China’s technology sector remains a focus for investors. In this article, we examine three high-growth technology stocks in China that have strong fundamentals and potential resilience to changing market dynamics.

The 10 fastest growing technology companies in China

Click here to see the full list of 246 stocks from our Chinese High Growth Tech and AI Stocks Screener.

We examine a selection of our screener results.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Skyworth Digital Co., Ltd. manufactures and distributes home video entertainment and intelligent connectivity solutions worldwide and has a market capitalization of CNY 12.57 billion.

Operations: Skyworth Digital Co., Ltd. generates its revenue primarily through the sale of home video entertainment and intelligent connectivity solutions. The company operates worldwide and serves a diverse market with its product offerings.

Skyworth Digital reported half-year revenue of 4.44 billion yen, down from 5.15 billion yen a year earlier. Net profit was 181.82 million yen, down from 317.64 million yen a year earlier. Despite this, the company is forecast to achieve annual profit growth of 29.6%, outpacing the Chinese market at 22%. The company has allocated significant funds to innovation, with research and development spending a key contributor to its strategy for future growth and competitiveness in the technology industry.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Talkweb Information System Co., Ltd. is engaged in educational services and mobile games in China and has a market capitalization of CNY 13.57 billion.

Operations: Talkweb Information System Co., Ltd. generates its revenue mainly from IT services and software (CNY 1.62 billion) and the manufacture of computers, communications equipment and other electronic devices (CNY 2.19 billion).

The story continues

Talkweb Information System Ltd. reported a significant 62.3% year-on-year increase in revenue, reaching 1.73 billion yen in the first half of 2024. However, net profit fell sharply from 57.81 million yen to 3.34 million yen, highlighting operational challenges despite robust revenue growth. The company is expected to post a 67.6% increase in annual profit, driven by its strategic focus on research and development, which accounted for a significant portion of spending at 295 million yen in the last quarter alone, reflecting the company’s commitment to innovation and future competitiveness in China’s technology landscape.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangsu Hoperun Software Co., Ltd. is a software company that provides products, solutions and services based on new generation information technology in various regions including China, Japan, Southeast Asia and North America, with a market capitalization of approximately CNY 16.22 billion.

Operations: Hoperun Software provides software products, solutions and services based on new generation information technology in China, Japan, Southeast Asia, North America and other international markets. The company has a market capitalization of approximately CN¥16.22 billion.

Jiangsu Hoperun Software’s profits are expected to grow by an impressive 38.9% annually, outperforming the broader Chinese market at 22%. Revenue is also expected to grow by 21.5% annually, outpacing the national average growth rate of 13.4%. With a strong focus on research and development, the company invested 295 million yen in the last quarter alone, underscoring its commitment to innovation and future competitiveness in China’s technology landscape.

Turning ideas into action

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It 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 long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

The companies discussed in this article include SZSE:000810, SZSE:002261 and SZSE:300339.

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