As global markets react to the recent Federal Reserve rate cut, Hong Kong’s Hang Seng Index has seen a notable rise, reflecting broader investor optimism. 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% |
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) |
15% |
78.9% |
|
DPC Dash (SEHK:1405) |
38.2% |
104.2% |
|
Kindstar Globalgene Technology (SEHK:9960) |
16.5% |
88% |
|
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) |
13.9% |
109.2% |
|
Beijing Airdoc Technology (SEHK:2251) |
29.1% |
93.4% |
Here we highlight a subset of our preferred stocks from the screener.
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 of CN¥117.32 billion domestically and CN¥3.57 billion from overseas operations.
Insider Ownership: 19.4%
Earnings Growth Forecast: 18.7% p.a.
Kuaishou Technology, with substantial insider ownership, has shown strong growth potential. Recent earnings for Q2 2024 reported sales of CNY 30.98 billion and net income of CNY 3.98 billion, significantly up from the previous year. The company’s innovative Kling AI video generation model and recent upgrades have enhanced user engagement and expanded its subscription base in mainland China, indicating robust future revenue streams and solidifying its position in the market.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$802.38 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%
Earnings Growth Forecast: 15.2% p.a.
BYD, with significant insider ownership, has demonstrated robust growth. Recent unaudited results show production and sales volumes for August 2024 at 366,973 and 373,083 units respectively. The company’s H1 2024 earnings reported sales of CNY 294.77 billion and net income of CNY 13.63 billion. BYD’s strategic partnership with Uber to deploy electric vehicles globally underscores its commitment to expansion and innovation in the EV market while maintaining strong financial performance.
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$841.32 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%
Earnings Growth Forecast: 26% p.a.
Meituan, with significant insider ownership, has shown strong growth. The company reported a substantial increase in earnings for H1 2024, with net income rising to CNY 16.72 billion from CNY 8.05 billion a year ago. Additionally, Meituan has been actively repurchasing shares, completing buybacks worth HKD 7.17 billion and US$2 billion in recent months. Forecasts indicate that Meituan’s earnings will grow significantly faster than the Hong Kong market over the next three years.
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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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