In September 2024, the Hong Kong market has been navigating through significant global economic shifts, with recent rate cuts by major central banks and a mixed performance across various indices. Against this backdrop, growth stocks with high insider ownership are particularly intriguing as they often indicate strong confidence from those closest to the company’s operations. For investors looking to capitalize on these trends, identifying companies where insiders hold substantial stakes can be a promising strategy. Here are three standout growth stocks on the SEHK that exhibit high insider ownership this month.
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% |
|
DPC Dash (SEHK:1405) |
38.2% |
104.2% |
|
Beijing Airdoc Technology (SEHK:2251) |
29.1% |
93.4% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
|
Lianlian DigiTech (SEHK:2598) |
19.7% |
92.3% |
We’ll examine a selection from our screener results.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$773 billion, operates in the automobiles and batteries business across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: The company’s revenue segments 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 shown impressive growth with a significant increase in production and sales volumes, reporting CNY 294.77 billion in sales and CNY 13.63 billion in net income for H1 2024. The company’s strategic partnership with Uber to deploy 100,000 electric vehicles globally underscores its expansion efforts. With forecasted annual profit growth of 15.23% and revenue growth of 14.1%, BYD remains a key player with substantial insider ownership driving its ambitious global strategy.
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 approximately HK$777.88 billion.
Operations: The company generates revenue from two main segments: Core Local Commerce (CN¥228.13 billion) and New Initiatives (CN¥77.56 billion).
Insider Ownership: 11.6%
Earnings Growth Forecast: 25.8% p.a.
Meituan’s recent performance highlights its strong growth trajectory, reporting CNY 155.53 billion in sales and CNY 16.72 billion in net income for H1 2024, doubling net income from the previous year. The company has completed significant share buybacks totaling HKD 7.17 billion, reflecting robust insider confidence. Forecasted annual profit growth of 25.8% outpaces the Hong Kong market, though revenue growth is expected to be moderate at 12.9% per year.
Simply Wall St Growth Rating: ★★★★★★
Overview: Akeso, Inc., a biopharmaceutical company with a market cap of HK$62.51 billion, researches, develops, manufactures, and commercializes antibody drugs.
Operations: The company’s revenue segment primarily includes the research, development, production, and sale of biopharmaceutical products amounting to CN¥1.87 billion.
Insider Ownership: 20.5%
Earnings Growth Forecast: 54.7% p.a.
Akeso, a growth company with high insider ownership in Hong Kong, has demonstrated significant progress in its clinical pipeline. Recent phase 2 results for ivonescimab combined with chemotherapy showed excellent efficacy and safety in treating triple-negative breast cancer. Despite a net loss of CNY 238.59 million for H1 2024, the company’s innovative therapies like ivonescimab and ligufalimab hold promising long-term potential, supported by substantial ongoing clinical trials and priority review approvals.
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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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