As global markets react to potential interest rate cuts and economic shifts, the Hong Kong stock market remains a focal point for investors seeking growth opportunities. In this context, companies with high insider ownership often signal confidence in their future prospects, making them particularly compelling.
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% |
|
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% |
|
Lianlian DigiTech (SEHK:2598) |
19.7% |
88.8% |
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$724.50 billion, operates in the automobiles and batteries business across the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.
Operations: BYD generates revenue from its automobiles and batteries business 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 shown strong growth with production and sales volumes increasing significantly year-over-year, reaching 1.95 million units produced and sold by July 2024. The company’s strategic partnership with Uber to deploy 100,000 electric vehicles globally highlights its market expansion efforts. Additionally, BYD’s earnings are forecasted to grow at 15.2% annually, outpacing the Hong Kong market average of 10.9%. High insider ownership suggests confidence in BYD’s long-term prospects amidst its global expansion initiatives.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kingsoft Corporation Limited operates in the entertainment and office software sectors, serving markets in Mainland China, Hong Kong, and internationally, with a market cap of HK$28.53 billion.
Operations: Kingsoft’s revenue segments include CN¥4.80 billion from Office Software and Services and CN¥4.18 billion from Entertainment Software and Others.
Insider Ownership: 20.3%
Earnings Growth Forecast: 24.5% p.a.
Kingsoft has demonstrated robust growth, with Q2 2024 revenue rising to CNY 2.47 billion from CNY 2.19 billion a year ago and net income surging to CNY 393.35 million from CNY 57.19 million. Earnings are forecasted to grow significantly at 24.5% annually, outpacing the Hong Kong market average of 10.9%. The company’s recent share buyback program further underscores insider confidence in its future prospects and aims to enhance shareholder value through improved earnings per share.
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$193.70 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’ earnings are forecast to grow at 15.3% annually, outpacing the Hong Kong market’s 10.9%. Recent insider activity shows more shares bought than sold in the past three months, indicating confidence. The company reported a net income of US$550.37 million for H1 2024, up from US$475.78 million a year ago, and announced an interim dividend of HKD 1.08 per share. The new CEO appointment underscores leadership stability amidst consistent revenue growth.
Summing It All Up
Contemplating Other Strategies?
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:3888 and SEHK:669.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com