As global markets experience mixed performance and economic indicators continue to shape investor sentiment, the Hong Kong market remains a focal point for growth opportunities. In this context, identifying growth companies with high insider ownership can be particularly appealing as it often signals strong confidence from those closest to the business.
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% |
55.0% |
|
Fenbi (SEHK:2469) |
31.2% |
22.4% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.7% |
69.8% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
76.4% |
|
Adicon Holdings (SEHK:9860) |
22.4% |
35.8% |
|
DPC Dash (SEHK:1405) |
38.2% |
100.5% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
|
Beijing Airdoc Technology (SEHK:2251) |
28.6% |
93.4% |
Let’s take a closer look at a couple of our picks from the screened companies.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$747.85 billion, operates in the automobiles and batteries sectors across the People’s Republic of 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’s recent earnings report showed strong growth, with sales reaching CNY 294.77 billion and net income rising to CNY 13.63 billion for the first half of 2024. The company has also expanded globally, inaugurating a new plant in Thailand and forming a strategic partnership with Uber to deploy electric vehicles. Analysts forecast BYD’s annual profit growth at 15.17% and revenue growth at 13.8%, both outpacing the Hong Kong market averages, indicating robust future potential despite high insider ownership concerns being minimal recently.
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$739.72 billion.
Operations: The company’s revenue segments include New Initiatives generating CN¥77.56 billion and Core Local Commerce contributing CN¥228.13 billion.
Insider Ownership: 11.3%
Revenue Growth Forecast: 12.9% p.a.
Meituan’s latest earnings report highlights robust growth, with sales reaching CNY 155.53 billion and net income doubling to CNY 16.72 billion for the first half of 2024. The company has also announced a $1 billion share repurchase program, signaling confidence in its future prospects. Analysts forecast annual profit growth of 25.8% and revenue growth of 12.9%, both outpacing the Hong Kong market averages, despite no substantial insider buying recently.
Simply Wall St Growth Rating: ★★★★★★
Overview: Akeso, Inc., a biopharmaceutical company, researches, develops, manufactures, and commercializes antibody drugs with a market cap of HK$42.47 billion.
Operations: The company generates CN¥1.87 billion from the research, development, production, and sale of biopharmaceutical products.
Insider Ownership: 20.5%
Revenue Growth Forecast: 32.5% p.a.
Akeso, Inc. recently reported a significant drop in revenue to CNY 1.02 billion for H1 2024, with a net loss of CNY 238.59 million compared to last year’s net income of CNY 2.53 billion. Despite this, the company has made strides in drug development, receiving priority review for ivonescimab’s new indication and progressing multiple Phase III trials globally. High insider ownership aligns management interests with shareholders amidst these developments.
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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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