Amidst a backdrop of fluctuating global markets, the Hong Kong stock market has shown resilience, reflecting a complex interplay of local and international economic signals. In such an environment, growth companies with high insider ownership in Hong Kong present an intriguing focus for investors looking to tap into entities with potentially aligned interests between shareholders and management. A good stock often features robust insider stakes which can signal strong confidence in the company’s future from those who know it best. This becomes particularly relevant in current market conditions where discerning stability and growth potential is key.
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% |
|
Fenbi (SEHK:2469) |
32.4% |
43% |
|
DPC Dash (SEHK:1405) |
38.2% |
89.7% |
|
Adicon Holdings (SEHK:9860) |
22.3% |
29.6% |
|
Tian Tu Capital (SEHK:1973) |
34% |
70.5% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.5% |
79.3% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
100.1% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
75.4% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.2% |
83.9% |
|
Kindstar Globalgene Technology (SEHK:9960) |
16.5% |
48.4% |
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$743.85 billion.
Operations: The company’s revenue is derived from its automobile and battery sectors.
Insider Ownership: 30.1%
BYD Company Limited, a key player in Hong Kong’s growth sector with significant insider ownership, has demonstrated robust operational performance and strategic expansion. Recently, it reported a substantial increase in production and sales volumes year-over-year as of May 2024. The company also introduced the BYD SHARK in Mexico, marking its first global product launch outside China—a move that enhances its portfolio and global footprint. Additionally, BYD has maintained a consistent dividend payout with the latest being RMB 3.096 per share approved on June 06, 2024. These developments underscore BYD’s commitment to growth and shareholder value amidst dynamic market conditions.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Shanghai INT Medical Instruments Co., Ltd. operates in the medical instruments sector with a market capitalization of approximately HK$4.67 billion.
Operations: The company generates revenue primarily from its Cardiovascular Interventional Business, totaling CN¥641.32 million.
Insider Ownership: 29.8%
Shanghai INT Medical Instruments, recognized for its high insider ownership, is poised for considerable growth with earnings forecasted to increase by 25.41% annually. Despite a recent dilution of shareholders, the company’s revenue is expected to outpace the Hong Kong market significantly at 26% yearly growth. Trading at 39.7% below its estimated fair value enhances its appeal as an undervalued opportunity in a robust sector. Recent dividends and solid financial performance underscore its commitment to shareholder returns and operational stability.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Meituan is a technology retail company based in the People’s Republic of China, with a market capitalization of approximately HK$708 billion.
Operations: The revenue segments information for the discussed company is not provided in the text.
Insider Ownership: 11.4%
Meituan, a growth company with significant insider ownership, has shown robust financial performance with net income rising to CNY 5.37 billion in Q1 2024 from CNY 3.36 billion year-over-year. Earnings are expected to grow by 31.5% annually over the next three years, outpacing the Hong Kong market’s average. Despite challenges like one-off items affecting earnings quality, Meituan’s strong insider buying trends and substantial earnings growth reflect positively on its potential as a high-growth entity in Hong Kong’s competitive landscape.
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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:1501 and SEHK:3690.
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