As global markets react to the recent Federal Reserve rate cut, Hong Kong’s Hang Seng Index has experienced a notable uptick, gaining 5.12% in a holiday-shortened week. Amid this positive market sentiment, investors are increasingly looking at growth companies with high insider ownership as potential opportunities. In the current environment, stocks with significant insider ownership can be particularly attractive due to the confidence it reflects from those closest to the company’s operations and strategy.
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% |
|
Xiamen Yan Palace Bird’s Nest Industry (SEHK:1497) |
26.7% |
23.8% |
|
Pacific Textiles Holdings (SEHK:1382) |
11.2% |
37.7% |
|
Zhejiang Leapmotor Technology (SEHK:9863) |
15% |
78.9% |
|
DPC Dash (SEHK:1405) |
38.2% |
104.2% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
|
Beijing Airdoc Technology (SEHK:2251) |
29.1% |
93.4% |
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kuaishou Technology, an investment holding company with a market cap of HK$187.55 billion, provides live streaming, online marketing, and other services in the People’s Republic of China.
Operations: The company generates revenue from domestic operations amounting to CN¥117.32 billion and overseas operations totaling CN¥3.57 billion.
Insider Ownership: 19.4%
Kuaishou Technology, a growth company with high insider ownership in Hong Kong, has shown significant profit growth, becoming profitable this year. Its earnings are forecast to grow faster than the market at 18.7% per year. Recent earnings reports show strong performance with net income rising from CNY 1.48 billion to CNY 3.98 billion YoY for Q2 2024. Despite trading at a good value compared to peers, its revenue growth is slower than desired but still above the market average.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$780.64 billion, operates in the automobiles and batteries sectors 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%
BYD has demonstrated robust growth with substantial insider ownership. Its earnings are forecast to grow at 15.23% per year, outpacing the Hong Kong market average of 11.8%. Recent results show strong performance, with H1 2024 net income rising to CNY 13.63 billion from CNY 10.95 billion YoY and sales increasing to CNY 294.77 billion from CNY 254.74 billion YoY. BYD’s strategic partnership with Uber and global expansion efforts further bolster its growth trajectory.
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$832.39 billion.
Operations: The company’s revenue segments include Core Local Commerce, generating CN¥228.13 billion, and New Initiatives, contributing CN¥77.56 billion.
Insider Ownership: 11.6%
Meituan has shown significant growth, with earnings increasing by 175.5% over the past year and forecasts predicting a 25.84% annual growth rate. Despite no substantial insider buying in the last three months, insiders have purchased more shares than they sold. The company recently completed a buyback of 139 million shares for $2 billion and reported H1 2024 sales of CNY 155.53 billion, up from CNY 126.58 billion YoY, with net income doubling to CNY 16.72 billion.
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:1024 SEHK:1211 and SEHK:3690.
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