As the Hong Kong market experiences a period of cautious optimism amid global economic fluctuations, investors are increasingly focusing on growth companies with strong fundamentals. High insider ownership is often seen as a positive indicator, suggesting that those closest to the company have confidence in its future prospects.
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% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.7% |
70.6% |
|
Tian Tu Capital (SEHK:1973) |
34% |
70.5% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
28.3% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
76.4% |
|
Kindstar Globalgene Technology (SEHK:9960) |
16.5% |
48.4% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
100.1% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.6% |
83.9% |
|
DPC Dash (SEHK:1405) |
38.2% |
91.5% |
Let’s review some notable picks from our screened stocks.
Simply Wall St Growth Rating: ★★★★★★
Overview: iDreamSky Technology Holdings Limited operates a digital entertainment platform publishing games via mobile apps and websites in China, with a market cap of HK$3.65 billion.
Operations: The company’s revenue segments include Game and Information Services (including SaaS and other related services), which generated CN¥1.92 billion.
Insider Ownership: 18.8%
Revenue Growth Forecast: 29.8% p.a.
iDreamSky Technology Holdings, with substantial insider ownership, is forecast to become profitable within three years and achieve a high return on equity of 24.8%. Despite recent shareholder dilution from a HK$257.68 million follow-on equity offering, the company trades at 47.5% below its estimated fair value. Revenue is projected to grow at an impressive 29.8% annually, significantly outpacing the Hong Kong market’s average growth rate of 7.4%.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$724.44 billion, operates in the automobiles and batteries business across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: BYD generates revenue from its automobiles and batteries businesses across China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
Revenue Growth Forecast: 14.0% p.a.
BYD, with significant insider ownership, has shown robust growth in production and sales volumes, reporting 1.96 million units produced and 1.95 million units sold year-to-date as of July 2024. The strategic partnership with Uber to deploy 100,000 electric vehicles globally underscores its market expansion efforts. Despite trading at a substantial discount to its estimated fair value, BYD’s earnings are forecast to grow at 15.22% annually, outpacing the Hong Kong market average of 11%.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Meituan is a technology retail company operating in the People’s Republic of China with a market cap of HK$662.89 billion.
Operations: Meituan generates revenue from various segments, including food delivery (CN¥96.27 billion), in-store, hotel & travel services (CN¥32.55 billion), and new initiatives & others (CN¥50.13 billion).
Insider Ownership: 11.6%
Revenue Growth Forecast: 12.8% p.a.
Meituan, with strong insider ownership, is forecast to grow earnings by 31.3% annually, significantly outpacing the Hong Kong market’s 11%. Recent amendments to its articles of association and a $2 billion share repurchase program highlight strategic moves. Despite trading at 73% below estimated fair value, Meituan has faced large one-off items impacting financial results. Its revenue grew from ¥58.62 billion to ¥73.28 billion year-over-year in Q1 2024.
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:1119 SEHK:1211 and SEHK:3690.
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