The Hong Kong market has been experiencing a mixed performance, with the Hang Seng Index advancing despite global economic uncertainties and cautious sentiment ahead of major policy announcements. Amid this backdrop, identifying growth companies with high insider ownership can offer unique investment opportunities, especially as these firms often exhibit strong earnings potential and alignment between management and shareholder interests. In this article, we will explore three standout stocks listed on the SEHK that exemplify these characteristics, showcasing their impressive earnings growth of up to 31%.
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% |
|
RemeGen (SEHK:9995) |
16.1% |
52.2% |
|
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% |
Let’s explore several standout options from the results in the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$724.49 billion, operates in the automobiles and batteries sectors 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%
Earnings Growth Forecast: 15.2% p.a.
BYD, a growth company with high insider ownership, has shown strong performance with earnings growing 52.7% over the past year and forecasted annual profit growth of 15.22%. Recent strategic partnerships, such as the one with Uber to deploy 100,000 electric vehicles globally, bolster its market position. Despite slower revenue growth at 14% per year compared to some peers, BYD’s production and sales volumes have consistently increased 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 HK$662.89 billion.
Operations: The company generates revenue from various segments, including Food Delivery (CN¥96.28 billion), In-Store, Hotel & Travel (CN¥32.74 billion), and New Initiatives & Others (CN¥57.42 billion).
Insider Ownership: 11.6%
Earnings Growth Forecast: 31.3% p.a.
Meituan’s high insider ownership aligns with its robust growth trajectory, evidenced by earnings rising to CNY 5.37 billion in Q1 2024 from CNY 3.36 billion a year ago. Forecasts indicate annual profit growth of 31.3%, outpacing the Hong Kong market average of 10.9%. Recent developments include a $2 billion share repurchase program and amendments to company bylaws, reflecting strategic adjustments amid leadership changes and strong financial performance.
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$193.70 billion.
Operations: The company’s revenue segments are comprised of $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 exhibits strong growth potential with high insider ownership and forecasted annual earnings growth of 15.3%, surpassing the Hong Kong market average. Recent developments include a dividend increase to HK$1.08 per share and the appointment of Steven Philip Richman as Executive Director, bringing extensive industry experience. The company reported half-year sales of US$7.31 billion, up from US$6.88 billion, with net income rising to US$550.37 million from US$475.78 million year-over-year.
Key Takeaways
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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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