The Hong Kong market has been showing resilience, with the Hang Seng Index up nearly 2% recently, despite weaker-than-expected economic activity in China. This backdrop makes it an opportune time to explore growth companies with high insider ownership, as these stocks often benefit from strong internal confidence and alignment of interests between management and shareholders.
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% |
|
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% |
|
Beijing Fourth Paradigm Technology (SEHK:6682) |
22.8% |
104.2% |
|
DPC Dash (SEHK:1405) |
38.2% |
91.5% |
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, 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$712.82 billion.
Operations: BYD’s revenue segments include automobiles and batteries, serving markets in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
Earnings Growth Forecast: 15.2% p.a.
BYD has demonstrated robust growth with earnings up 52.7% over the past year and forecasts indicating continued revenue growth at 14% annually, outpacing the Hong Kong market. Recent milestones include a strategic partnership with Uber to deploy 100,000 electric vehicles globally and the inauguration of a new plant in Thailand. Despite high insider ownership, there has been no substantial insider trading activity in recent months.
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$661.07 billion.
Operations: The company’s revenue segments are: Food Delivery (CN¥96.35 billion), In-Store, Hotel & Travel (CN¥32.55 billion), and New Initiatives & Others (CN¥59.29 billion).
Insider Ownership: 11.6%
Earnings Growth Forecast: 31.3% p.a.
Meituan has shown strong revenue growth, with first-quarter sales rising to CNY 73.28 billion from CNY 58.62 billion last year and net income increasing to CNY 5.37 billion from CNY 3.36 billion. The company announced a US$2 billion share repurchase program in June and made significant amendments to its articles of association. Despite high insider ownership, there has been no substantial insider buying or selling recently, though earnings are forecasted to grow significantly at 31.3% annually over the next three years.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products globally with a market cap of HK$189.30 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%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries has demonstrated solid growth, with first-half 2024 sales rising to US$7.31 billion from US$6.88 billion last year and net income increasing to US$550.37 million from US$475.78 million. The company recently appointed Steven Richman as CEO, who brings extensive industry experience and a track record of driving revenue growth at Milwaukee Tool. Additionally, Techtronic announced a HKD 1.08 per share interim dividend and initiated a significant share repurchase program aimed at enhancing shareholder value.
Summing It All Up
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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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