The Hong Kong market has shown resilience amid global economic shifts, with the Hang Seng Index advancing despite broader caution in Chinese stocks. As investors navigate these uncertain times, identifying growth companies with high insider ownership can offer a strategic advantage, as such ownership often signals confidence in the company’s long-term 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% |
|
Archosaur Games (SEHK:9990) |
37.3% |
166.8% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
28.3% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
76.4% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
100.1% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.6% |
83.9% |
|
DPC Dash (SEHK:1405) |
38.2% |
92.6% |
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$721.50 billion, operates in the automobiles and batteries business across the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.
Operations: BYD generates its revenue from the automobiles and batteries sectors, serving markets in China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
Earnings Growth Forecast: 15.2% p.a.
BYD Company Limited, a growth company with substantial insider ownership, has demonstrated robust production and sales growth, reporting 342,383 units produced in July 2024 compared to 262,161 units a year ago. The company’s strategic partnership with Uber aims to deploy 100,000 BYD electric vehicles globally. Earnings are forecasted to grow at 15.22% annually over the next three years. Despite trading below estimated fair value by 58.7%, it remains well-positioned for continued expansion and profitability in the EV market.
Simply Wall St Growth Rating: ★★★★★☆
Overview: DPC Dash Ltd, with a market cap of HK$8.26 billion, operates a chain of fast-food restaurants in the People’s Republic of China through its subsidiaries.
Operations: Revenue from restaurant operations amounts to CN¥3.05 billion.
Insider Ownership: 38.2%
Earnings Growth Forecast: 92.6% p.a.
DPC Dash, experiencing rapid growth with substantial insider ownership, projects first-half 2024 revenues of at least RMB 2.00 billion, a significant increase from RMB 1.38 billion in the same period last year. The company recently celebrated its 900th store opening in China and plans to reach 1,000 stores by year’s end. Despite lower forecasted Return on Equity (10.5%), DPC Dash’s revenue is expected to grow annually by 25.2%, outpacing the Hong Kong market rate of 7.4%.
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$192.41 billion.
Operations: Revenue segments include Power Equipment at $13.23 billion and Floorcare & Cleaning at $965.09 million.
Insider Ownership: 25.4%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries, with significant insider ownership, has shown steady growth. Its earnings grew by 7.8% over the past year and are forecast to grow at 15.3% annually, outpacing the Hong Kong market’s 10.9%. Recent insider activity indicates more shares bought than sold in the last three months. The company reported strong half-year results with sales of US$7.31 billion and net income of US$550.37 million, reflecting solid financial health and potential for continued growth.
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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:1405 and SEHK:669.
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