As global markets navigate through varying economic signals, Hong Kong’s stock market reflects a cautious yet opportunistic landscape for investors. In this context, growth companies with high insider ownership stand out as potentially resilient investment opportunities, given that high insider stakes often signal confidence in the company’s prospects 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) |
20.2% |
104.1% |
|
Fenbi (SEHK:2469) |
32.6% |
43% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Tian Tu Capital (SEHK:1973) |
34% |
70.5% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
28.3% |
|
DPC Dash (SEHK:1405) |
38.2% |
90.2% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.7% |
79.3% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
100.1% |
|
Ocumension Therapeutics (SEHK:1477) |
23.1% |
93.7% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.7% |
83.9% |
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 China, Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$732.26 billion.
Operations: The company generates revenue primarily from its automobile and battery sectors.
Insider Ownership: 30.1%
Earnings Growth Forecast: 14.8% p.a.
BYD, a notable growth company in Hong Kong with high insider ownership, has demonstrated robust performance with earnings growing by 52.7% over the past year and forecasted to grow annually at 14.78%. Despite its revenue growth rate of 13.7% being below the significant threshold of 20%, it still surpasses the Hong Kong market average of 7.7%. The company’s return on equity is expected to be strong at 22.3% in three years, indicating efficient management and profitable operations. Recent strategic developments include launching BYD SHARK, its first global product outside China, enhancing its product line and market reach.
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$736.58 billion.
Operations: The company’s revenue is derived from various technology retail operations across China.
Insider Ownership: 11.4%
Earnings Growth Forecast: 31.4% p.a.
Meituan, a growth company in Hong Kong with high insider ownership, reported a substantial increase in quarterly earnings and sales, with net income rising to CNY 5.37 billion from CNY 3.36 billion year-over-year. The company’s earnings are expected to grow by 31.4% annually, outpacing the local market’s forecast of 11.3%. Despite no significant insider purchases recently, Meituan has launched a US$2 billion share buyback program, signaling confidence from management but also highlighting potential concerns about future cash deployment and shareholder returns strategies.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kingsoft Corporation Limited operates in the entertainment and office software sectors, serving customers in Mainland China, Hong Kong, and globally, with a market capitalization of approximately HK$28.56 billion.
Operations: The company generates revenue through two main segments: office software and services, which brought in CN¥4.73 billion, and entertainment software and others, accounting for CN¥3.97 billion.
Insider Ownership: 20.4%
Earnings Growth Forecast: 32.7% p.a.
Kingsoft, a growth-oriented firm in Hong Kong with high insider ownership, is poised for robust earnings growth at 32.7% annually, outstripping the local market’s 11.3%. Despite slower revenue growth projections of 13.7% annually compared to a desired 20%, the company’s strategic share repurchases initiated on June 17, funded from ample cash flows, underscore a commitment to enhancing shareholder value. However, its forecasted Return on Equity of only 7.1% could raise concerns about long-term profitability efficiency.
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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:3690 and SEHK:3888.
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