The Hong Kong market has seen a notable uptick recently, with the Hang Seng Index gaining 1.99% amid mixed economic signals from China. As investors navigate these fluctuating conditions, companies with strong insider ownership often signal confidence in their growth prospects and potential resilience. In this context, identifying growth companies with high insider ownership can be particularly compelling for investors looking to capitalize on solid internal endorsements during uncertain times.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
|
Name |
Insider Ownership |
Earnings Growth |
|
iDreamSky Technology Holdings (SEHK:1119) |
18.8% |
104.1% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
28.3% |
|
Tian Tu Capital (SEHK:1973) |
34% |
70.5% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
76.4% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.7% |
79.3% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
100.1% |
|
Value Partners Group (SEHK:806) |
23.4% |
59.5% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.6% |
83.9% |
|
DPC Dash (SEHK:1405) |
38.2% |
91.5% |
Let’s dive into some prime choices out of the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally with a market cap of approximately HK$703.73 billion.
Operations: BYD’s revenue segments include CN¥166.6 billion from automobiles and CN¥59.7 billion from batteries.
Insider Ownership: 30.1%
BYD has shown strong growth with high insider ownership, evidenced by robust production and sales increases—1.96 million units produced and 1.95 million sold year-to-date as of July 2024. The strategic partnership with Uber to deploy 100,000 electric vehicles globally underscores its expansion efforts. BYD’s recent inauguration of a Thailand plant further highlights its global reach, while forecasts suggest revenue and earnings growth outpacing the Hong Kong market at 14% and 15.22% annually, respectively.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of approximately HK$654.99 billion.
Operations: The company generates revenue from various segments including food delivery, in-store, hotel & travel services, and new initiatives & others, with amounts in millions of CN¥.
Insider Ownership: 11.6%
Meituan demonstrates strong growth potential with high insider ownership, despite recent changes in its board and company bylaws. The company reported significant revenue and net income increases for Q1 2024, reaching CNY 73.28 billion and CNY 5.37 billion respectively. A new $2 billion share repurchase program indicates confidence in future performance. While insider buying wasn’t substantial, earnings are forecast to grow significantly at 31.3% annually, outpacing the Hong Kong market’s growth rate of 11%.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of HK$190.40 billion.
Operations: The company’s revenue segments include $13.23 billion from Power Equipment and $965.09 million from Floorcare & Cleaning products.
Insider Ownership: 25.4%
Techtronic Industries shows solid growth potential with high insider ownership. The company reported H1 2024 sales of US$7.31 billion and net income of US$550.37 million, both up from the previous year. Recent executive changes include Steven Richman as CEO, bringing extensive industry experience. The company announced an interim dividend of HK$1.08 per share and has initiated a share repurchase program to enhance shareholder value, reflecting strong internal confidence in its future performance.
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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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