As global markets navigate mixed trading and economic uncertainties, the Hong Kong market has shown resilience with the Hang Seng Index gaining 2.14%. In this environment, identifying growth companies with high insider ownership can be particularly valuable, as it often indicates strong confidence from those closest to the business. In today’s market conditions, stocks that demonstrate robust insider ownership are compelling because they reflect a vested interest in the company’s success. Here are three such growth companies listed on the SEHK that stand out for their high levels of insider investment.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
|
Name |
Insider Ownership |
Earnings Growth |
|
Laopu Gold (SEHK:6181) |
36.4% |
34.7% |
|
Akeso (SEHK:9926) |
20.5% |
55.1% |
|
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% |
81.4% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
76.4% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
33.6% |
|
DPC Dash (SEHK:1405) |
38.2% |
111.5% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.6% |
92.4% |
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$760.70 billion, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: BYD’s revenue segments include CN¥507.52 billion from Automobiles and Related Products, and CN¥154.49 billion from Mobile Handset Components, Assembly Service, and Other Products.
Insider Ownership: 30.1%
Revenue Growth Forecast: 13.8% p.a.
BYD has shown strong growth, with earnings increasing by 36.2% over the past year and revenue forecasted to grow at 13.8% annually, outpacing the Hong Kong market’s 7.5%. The company’s recent earnings report for H1 2024 showed sales of CNY 294.77 billion and net income of CNY 13.63 billion, up from CNY 254.74 billion and CNY 10.95 billion respectively a year ago. High insider ownership aligns management interests with shareholders, supporting sustained growth initiatives like their strategic partnership with Uber for EV deployment globally.
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$718.84 billion.
Operations: The company’s revenue segments are divided into New Initiatives, generating CN¥77.56 billion, and Core Local Commerce, contributing CN¥228.13 billion.
Insider Ownership: 11.6%
Revenue Growth Forecast: 12.9% p.a.
Meituan has demonstrated robust growth, with H1 2024 earnings showing significant increases in sales (CNY 155.53 billion) and net income (CNY 16.72 billion). The company’s earnings are expected to grow at 25.81% annually, outpacing the Hong Kong market’s average. Insider ownership remains high, aligning management interests with shareholders. Recent buyback announcements totaling $3 billion suggest confidence in future performance despite modest insider trading activity over the past three months.
Simply Wall St Growth Rating: ★★★★★★
Overview: Akeso, Inc., a biopharmaceutical company, researches, develops, manufactures, and commercializes antibody drugs with a market cap of HK$42.51 billion.
Operations: The company’s revenue segment primarily includes the research, development, production, and sale of biopharmaceutical products, generating CN¥1.87 billion.
Insider Ownership: 20.5%
Revenue Growth Forecast: 32.8% p.a.
Akeso, Inc. has shown substantial growth potential despite recent financial setbacks, reporting H1 2024 revenue of CNY 1.02 billion and a net loss of CNY 238.59 million. The company is advancing its innovative drug pipeline, with ivonescimab receiving priority review for new indications and showing superior efficacy in clinical trials. High insider ownership aligns management with shareholders’ interests, supporting long-term growth prospects amidst ongoing product development and market expansion efforts.
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:9926.
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