Amidst a backdrop of global market fluctuations, the Hong Kong stock market has recently faced significant challenges, marked by a notable decline in the Hang Seng Index. In such uncertain times, investors often seek stability and potential for growth in companies with high insider ownership, suggesting strong confidence from those who know the businesses best. In exploring growth companies within this context on the SEHK (Stock Exchange of Hong Kong), it becomes crucial to consider how high insider ownership can align interests between shareholders and management, potentially leading to more resilient performance amidst broader market volatility.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
|
Name |
Insider Ownership |
Earnings Growth |
|
iDreamSky Technology Holdings (SEHK:1119) |
20.1% |
104.1% |
|
New Horizon Health (SEHK:6606) |
16.6% |
61% |
|
Fenbi (SEHK:2469) |
32.1% |
43% |
|
Meitu (SEHK:1357) |
38% |
33.7% |
|
Adicon Holdings (SEHK:9860) |
22.3% |
29.6% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.5% |
79.3% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
14.2% |
73.8% |
|
Beijing Airdoc Technology (SEHK:2251) |
27.2% |
83.9% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
15.7% |
100.1% |
|
Ocumension Therapeutics (SEHK:1477) |
17.7% |
93.7% |
Let’s dive into some prime choices out of from the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited operates in the automobile and battery sectors across China, Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$676.34 billion.
Operations: The company’s revenue is derived primarily from its automobile and battery sectors.
Insider Ownership: 30.1%
Revenue Growth Forecast: 14.3% p.a.
BYD, a prominent player in Hong Kong’s growth companies with high insider ownership, has shown robust performance with significant year-over-year sales and production increases as of April 2024. The company’s recent launch of the BYD SHARK pickup in Mexico marks its strategic expansion into global markets, underscoring its innovative edge with advanced hybrid technologies. Despite trading below fair value, BYD’s earnings are expected to grow faster than the market average, though not exceedingly high. This balanced growth trajectory is supported by strong revenue forecasts outpacing general market expectations.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Dongyue Group Limited is an investment holding company that produces and markets a range of products including polymers, organic silicone, and refrigerants, primarily in the People’s Republic of China and globally, with a market capitalization of approximately HK$16.93 billion.
Operations: The company’s revenue is mainly derived from polymers (CN¥4.55 billion), refrigerants (CN¥5.48 billion), organic silicone (CN¥4.86 billion), and dichloromethane PVC and liquid alkali (CN¥1.21 billion).
Insider Ownership: 15.4%
Revenue Growth Forecast: 15.4% p.a.
Dongyue Group, a company in Hong Kong with high insider ownership, faces challenges despite significant expected earnings growth over the next three years. Recent events include substantial executive changes and a sharp decline in net profit due to lower product prices and higher raw material costs. These factors contributed to a reduced final dividend proposal. However, its revenue growth is projected to outpace the local market, suggesting some resilience amidst adversity.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Alibaba Health Information Technology Limited operates as an investment holding company focused on pharmaceutical direct sales, e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market capitalization of approximately HK$57.09 billion.
Operations: The company generates revenue primarily through its distribution and development of pharmaceutical and healthcare business, totaling CN¥27.03 billion.
Insider Ownership: 24.2%
Revenue Growth Forecast: 12.4% p.a.
Alibaba Health Information Technology, amidst a backdrop of high insider ownership, reported a robust increase in net income for the fiscal year ending March 2024, with earnings rising from CNY 535.65 million to CNY 883.48 million. This growth accompanies a revenue increment from CNY 26,763.02 million to CNY 27,026.56 million. Despite these positive trends and trading at significantly below its estimated fair value, concerns linger due to one-off items impacting earnings quality and a forecasted low return on equity in three years at only 13.8%.
Key Takeaways
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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.
Companies discussed in this article include SEHK:1211SEHK:189 SEHK:241 and
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