Amid a backdrop of fluctuating global markets, Hong Kong’s economy remains a focal point for investors seeking growth opportunities. In this context, companies with high insider ownership and substantial earnings growth present intriguing prospects, as they often signal strong confidence in the company’s future from those who know it best.
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% |
62.3% |
|
Fenbi (SEHK:2469) |
32.1% |
43% |
|
Meitu (SEHK:1357) |
38% |
33.7% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.5% |
79.3% |
|
Adicon Holdings (SEHK:9860) |
22.3% |
29.6% |
|
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% |
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited operates in the automobile and battery sectors across China, including Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$687.69 billion.
Operations: The company’s revenue is derived from its automobile and battery sectors across various regions including China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
Earnings Growth Forecast: 14.4% p.a.
BYD, a significant growth company with high insider ownership in Hong Kong, is trading at 33.4% below its estimated fair value, presenting a potential opportunity for investors. While its revenue growth forecast of 14.5% annually is robust, it’s slower than the market average for high-growth firms. However, earnings are expected to outpace the market with an annual increase of 14.4%. Recent strategic moves include launching BYD SHARK in Mexico and notable sales increases year-over-year as of April 2024, indicating strong operational momentum and market expansion efforts.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, e-commerce platforms, and healthcare and digital services primarily in Mainland China and Hong Kong, with a market capitalization of approximately HK$52.75 billion.
Operations: The company’s revenue from the distribution and development of pharmaceutical and healthcare business amounts to CN¥27.03 billion.
Insider Ownership: 24.2%
Earnings Growth Forecast: 23.1% p.a.
Alibaba Health Information Technology, while trading at 62.9% below its estimated fair value, shows promising growth prospects with earnings expected to increase by 23.1% annually, outpacing the Hong Kong market’s forecast of 11.9%. However, shareholder dilution occurred over the past year and one-off items have impacted financial results. Recent financials reveal a significant rise in net income to CNY 883.48 million from CNY 535.65 million last year, reflecting operational improvements and effective cost management strategies.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Beijing Fourth Paradigm Technology Co., Ltd. is an investment holding company that offers platform-centric artificial intelligence solutions in the People’s Republic of China, with a market capitalization of approximately HK$25.61 billion.
Operations: The company generates revenue through three main segments: the Sage AI Platform at CN¥2.51 billion, Sagegpt AIGS Services at CN¥0.42 billion, and Shift Intelligent Solutions at CN¥1.28 billion.
Insider Ownership: 22.8%
Earnings Growth Forecast: 96% p.a.
Beijing Fourth Paradigm Technology is poised for substantial growth, with revenue expected to increase by 19.3% annually, outperforming the Hong Kong market’s 7.9%. Although its Return on Equity is projected to be low at 6%, the company is forecasted to turn profitable within three years. Recent actions include a share buyback initiated on May 20, signaling confidence from management by repurchasing up to 10% of its issued share capital, which could enhance shareholder value through increased earnings per share.
Summing It All Up
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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:1211 SEHK:241 and SEHK:6682.
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