The Hong Kong market has been buoyed by the recent U.S. Federal Reserve rate cut, with the Hang Seng Index gaining over 5% in a holiday-shortened week. Despite some disappointing economic data from China, investor sentiment remains optimistic as further easing measures are anticipated. In this environment, growth companies with high insider ownership can be particularly appealing. Insider ownership often signals confidence in the company’s future prospects and aligns management’s interests with those of shareholders.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
|
Name |
Insider Ownership |
Earnings Growth |
|
Laopu Gold (SEHK:6181) |
36.4% |
32.7% |
|
Akeso (SEHK:9926) |
20.5% |
54.5% |
|
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) |
38.1% |
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% |
Let’s uncover some gems from our specialized screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kuaishou Technology is an investment holding company that offers live streaming, online marketing, and other services in the People’s Republic of China, with a market cap of approximately HK$206.73 billion.
Operations: Kuaishou Technology generates revenue primarily from its domestic operations, amounting to CN¥117.32 billion, and overseas activities, contributing CN¥3.57 billion.
Insider Ownership: 19.4%
Kuaishou Technology, a growth company with high insider ownership in Hong Kong, has shown strong financial performance. It reported CNY 30.98 billion in Q2 sales and CNY 3.98 billion net income, significantly up from last year. Its earnings are forecast to grow by 18.69% annually, faster than the Hong Kong market average of 11.7%. Trading at nearly half its estimated fair value and presenting at major industry conferences underscores its strategic positioning and investor interest.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, with a market cap of HK$825.50 billion, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: Revenue segments for BYD Company Limited are as follows: Automobiles and Related Products and Other Products generated CN¥507.52 billion, while Mobile Handset Components, Assembly Service and Other Products contributed CN¥154.49 billion.
Insider Ownership: 30.1%
BYD has demonstrated robust growth, with earnings increasing by 36.2% over the past year and forecasted to grow at 15.23% annually, outpacing the Hong Kong market’s average of 11.7%. Recent production and sales volumes have shown significant year-over-year increases, reflecting strong operational performance. Trading at a substantial discount to its estimated fair value, BYD’s strategic partnerships and global expansion efforts further bolster its growth potential in the electric vehicle sector.
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$906.22 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: 11.8%
Meituan has shown strong growth, with earnings up 175.5% over the past year and forecasted to grow 26% annually, outpacing the Hong Kong market’s average of 11.7%. The company has actively repurchased shares, spending HK$7.17 billion from January to June 2024. Despite trading at a significant discount to its fair value, insider buying has been minimal recently. Revenue is expected to grow at 12.9% per year, faster than the market rate of 7.3%.
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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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