As global markets experience fluctuations, with recent data showing mixed signals on inflation and economic growth, investors are keenly watching for stable investment opportunities. In Hong Kong, companies with high insider ownership and strong return on equity stand out as potentially resilient options in such uncertain times.
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% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Fenbi (SEHK:2469) |
32.8% |
43% |
|
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% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.7% |
83.9% |
|
Ocumension Therapeutics (SEHK:1477) |
23.1% |
93.7% |
Let’s take a closer look at a couple of our picks from the screened companies.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited operates in the automobile and battery sectors across China, Hong Kong, Macau, Taiwan, and other international markets, with a market capitalization of approximately HK$777.07 billion.
Operations: The company generates revenue from its automobile and battery sectors across various regions including China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
Return On Equity Forecast: 22% (2027 estimate)
BYD, a prominent entity in Hong Kong’s growth sector with significant insider ownership, has demonstrated robust year-over-year increases in both sales and production volumes as of June 2024. Recent strategic initiatives include launching the BYD SHARK pickup in global markets and enhancing manufacturing efficiency through automation with ForwardX Robotics. Despite its current valuation being significantly below estimated fair value, earnings are expected to grow by 15.35% annually. However, revenue growth projections of 14.2% per year lag behind the more aggressive industry benchmarks.
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$729.63 billion.
Operations: The company’s revenue is derived from technology retail operations within China.
Insider Ownership: 11.5%
Return On Equity Forecast: 21% (2027 estimate)
Meituan, a growth-oriented company in Hong Kong with high insider ownership, is expected to see its earnings grow by 31.24% annually. Despite a slower revenue growth rate of 12.7% per year compared to the market’s 20%, its earnings are projected to outpace the local market’s average. Recent corporate actions include a significant share repurchase program valued at HK$2 billion and amendments to company bylaws, signaling active management and shareholder engagement. However, there has been considerable insider selling over the last quarter, which may raise concerns among investors about long-term commitment from insiders.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Techtronic Industries Company Limited, with a market cap of HK$175.65 billion, specializes in designing, manufacturing, and marketing power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and other international markets.
Operations: Techtronic Industries’ revenue is primarily generated from power equipment, which brought in $12.79 billion, and floorcare and cleaning products, contributing $0.97 billion.
Insider Ownership: 25.4%
Return On Equity Forecast: 20% (2026 estimate)
Techtronic Industries, a notable entity in Hong Kong with high insider ownership, is poised for robust growth. The company’s revenue is expected to increase by 8.1% annually, slightly outpacing the Hong Kong market average of 7.7%. Additionally, its earnings are projected to grow at 14.9% per year, surpassing the local market’s growth rate of 11.5%. Recent developments include a significant share repurchase initiative and leadership changes with the retirement of CEO Joseph Galli Jr., succeeded by Steven Richman who has a track record of driving substantial growth at Milwaukee Tool. This transition could signal continued strategic momentum despite potential uncertainties associated with executive changes.
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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:669.
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