The Hong Kong market has been a focal point for investors amid global economic shifts, with the Hang Seng Index experiencing minor declines recently. Despite these challenges, growth companies with high insider ownership remain attractive due to their potential for robust performance and alignment of interests between management and shareholders. In the current environment, identifying stocks that combine strong growth prospects with significant insider ownership can be particularly appealing as it often indicates confidence in the company’s future from those who know it best.
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% |
54.7% |
|
Fenbi (SEHK:2469) |
33.1% |
22.4% |
|
Zylox-Tonbridge Medical Technology (SEHK:2190) |
18.8% |
69.8% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
14.7% |
78.9% |
|
Beijing Airdoc Technology (SEHK:2251) |
29.1% |
93.4% |
|
Kindstar Globalgene Technology (SEHK:9960) |
16.5% |
88% |
|
DPC Dash (SEHK:1405) |
38.2% |
104.2% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$770.06 billion, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: Revenue segments for the company include CN¥507.52 billion from Automobiles and Related Products and Other Products, and CN¥154.49 billion from Mobile Handset Components, Assembly Service, and Other Products.
Insider Ownership: 30.1%
Earnings Growth Forecast: 15.2% p.a.
BYD has demonstrated significant growth, with recent earnings increasing to CNY 13.63 billion for the first half of 2024 from CNY 10.95 billion a year ago. The company’s production and sales volumes have also surged, reflecting strong operational performance. Insider ownership remains high, aligning management interests with shareholders. Additionally, BYD’s strategic partnership with Uber to deploy 100,000 electric vehicles globally underscores its commitment to expanding market presence and enhancing revenue streams through innovative collaborations.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Meituan operates as a technology retail company in the People’s Republic of China and has a market cap of approximately HK$766.11 billion.
Operations: The company’s revenue segments include New Initiatives, which generated CN¥77.56 billion, and Core Local Commerce, contributing CN¥228.13 billion.
Insider Ownership: 11.6%
Earnings Growth Forecast: 25.8% p.a.
Meituan’s earnings are expected to grow significantly, outpacing the Hong Kong market at 25.8% annually. Despite a lower forecasted return on equity of 18.8%, revenue growth is projected at 12.9% per year, surpassing the market average. Insider ownership remains high, with more shares bought than sold recently, though not in substantial volumes. Recent buybacks totaled HKD 7.17 billion for 1.33% of shares, reinforcing confidence in long-term growth prospects and alignment with shareholder interests.
Simply Wall St Growth Rating: ★★★★★★
Overview: Akeso, Inc. is a biopharmaceutical company that researches, develops, manufactures, and commercializes antibody drugs with a market cap of approximately HK$61.99 billion.
Operations: The primary revenue segment for Akeso, Inc. is the research, development, production, and sale of biopharmaceutical products, generating CN¥1.87 billion.
Insider Ownership: 20.5%
Earnings Growth Forecast: 54.7% p.a.
Akeso’s revenue is forecast to grow 33.1% annually, significantly outpacing the Hong Kong market. Earnings are expected to increase by 54.67% per year, with profitability projected within three years. Despite recent shareholder dilution and a volatile share price, the stock trades at 46.3% below its estimated fair value. Recent clinical trials for ivonescimab show promising efficacy and safety in treating various cancers, highlighting strong growth potential amid high insider ownership and strategic advancements in oncology treatments.
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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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