Amidst a backdrop of global economic shifts and market adjustments, Hong Kong’s stock market has experienced its own set of challenges, notably reflected by a 2.84% drop in the Hang Seng Index. As investors navigate these uncertain waters, focusing on growth companies with high insider ownership could provide a beacon of stability and potential growth. High insider ownership often signals strong confidence from those who know the company best—its leaders and key stakeholders. In the current climate, where discerning solid investment opportunities is more crucial than ever, such stocks might offer valuable prospects for informed investors.
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% |
|
Meitu (SEHK:1357) |
38% |
33.7% |
|
Adicon Holdings (SEHK:9860) |
22.3% |
29.6% |
|
DPC Dash (SEHK:1405) |
38.2% |
89.7% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.5% |
79.3% |
|
Tian Tu Capital (SEHK:1973) |
34% |
70.5% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
15.7% |
100.1% |
|
Beijing Airdoc Technology (SEHK:2251) |
27.2% |
83.9% |
|
Ocumension Therapeutics (SEHK:1477) |
17.7% |
93.7% |
Let’s uncover some gems from our specialized screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited operates in the automobile and battery sectors across Mainland China, Hong Kong, Macao, Taiwan, and internationally, with a market capitalization of approximately HK$715.52 billion.
Operations: The company generates its revenue from the automobile and battery sectors.
Insider Ownership: 30.1%
BYD, a prominent player in Hong Kong’s high-growth sectors with substantial insider ownership, is trading at a 30.2% discount to its estimated fair value. While its earnings growth is not exceptional, it surpasses the market with forecasts of 14.7% per year compared to the Hong Kong market’s 11.8%. Additionally, revenue is expected to increase by 14.5% annually, outpacing the local market growth of 7.9%. Recent strategic launches like the BYD SHARK in Mexico and robust sales figures underscore its aggressive expansion and innovation trajectory.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Alibaba Health Information Technology Limited operates as an investment holding company, focusing on pharmaceutical direct sales, pharmaceutical e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market cap of approximately HK$54.19 billion.
Operations: The company generates revenue primarily through its distribution and development of pharmaceutical and healthcare business, which amounted to CN¥27.03 billion.
Insider Ownership: 24.2%
Alibaba Health Information Technology Limited has demonstrated robust financial performance, with a notable increase in net income from CNY 535.65 million to CNY 883.48 million year-over-year and a rise in sales to CNY 27.03 billion. Despite trading at 61.8% below its estimated fair value, concerns such as shareholder dilution over the past year and low forecasted Return on Equity at 13.5% temper its attractiveness. However, the company’s earnings are expected to grow significantly, outpacing the Hong Kong market’s average with an annual growth rate of 23.1%.
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$24.59 billion.
Operations: The company generates revenue through three primary segments: the Sage AI Platform (CN¥2.51 billion), SageGPT AiGS Services (CN¥415.50 million), and Shift Intelligent Solutions (CN¥1.28 billion).
Insider Ownership: 22.8%
Beijing Fourth Paradigm Technology has experienced significant revenue growth, up 36.4% this past year, with earnings projected to increase by 95.97% annually. Despite a highly volatile share price recently, the company’s revenue growth of 19.3% per year is set to outpace the Hong Kong market average of 7.9%. Additionally, a recent share repurchase initiative could enhance shareholder value by potentially boosting net asset value and earnings per share as shares are cancelled following buybacks.
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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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