Discovering Hong Kong's Hidden Stock Gems In August 2024

As global markets react to anticipated rate cuts and small-cap stocks outperform their larger counterparts, the Hong Kong market presents unique opportunities for discerning investors. In this climate of cautious optimism, identifying undervalued stocks with strong fundamentals and growth potential becomes crucial for capitalizing on emerging trends.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
S.A.S. Dragon Holdings	60.96%	4.62%	10.02%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-3.84%	16.33%	★★★★★★
PW Medtech Group	NA	17.93%	-2.70%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
JiaXing Gas Group	17.72%	26.04%	22.07%	★★★★★☆
Hung Hing Printing Group	3.97%	-2.51%	33.57%	★★★★★☆
Chongqing Machinery & Electric	28.07%	8.82%	11.12%	★★★★★☆
Changjiu Holdings	14.09%	12.87%	-4.74%	★★★★★☆
Time Interconnect Technology	212.50%	27.21%	15.01%	★★★★☆☆
Pizu Group Holdings	48.34%	-4.53%	-19.78%	★★★★☆☆

Click here to see the full list of 172 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Xin Point Holdings (SEHK:1571)

Simply Wall St Value Rating: ★★★★★☆

Overview: Xin Point Holdings Limited is an investment holding company that manufactures and sells automotive and electronic components in China, North America, Europe, and internationally, with a market cap of HK$3.34 billion.

Operations: Xin Point Holdings generates revenue primarily from the manufacture and sale of automotive and electronic components, totaling CN¥3.23 billion.

Xin Point Holdings, a small cap in the Auto Components industry, has shown impressive performance with earnings growth of 27.4% over the past year, outpacing the industry's -16.7%. Trading at 75.6% below its estimated fair value, it offers potential for value investors. Recent results reveal sales of CNY 1.65 billion and net income of CNY 322 million for H1 2024 compared to CNY 263 million a year ago. The company declared an interim dividend of HKD 0.2 per share payable on October 25, showcasing strong financial health and shareholder returns.

• Unlock comprehensive insights into our analysis of Xin Point Holdings stock in this health report.

• Explore historical data to track Xin Point Holdings' performance over time in our Past section.

Bank of Tianjin (SEHK:1578)

Simply Wall St Value Rating: ★★★★★★

Overview: Bank of Tianjin Co., Ltd. provides a range of banking and related financial services primarily in the People’s Republic of China, with a market cap of HK$10.62 billion.

Operations: Bank of Tianjin generates revenue through various banking and financial services primarily in China. The company's net profit margin is a key metric to consider when evaluating its financial performance.

Bank of Tianjin, with total assets of CN¥871.1B and equity of CN¥66.5B, reported earnings growth of 22.5% over the past year, outpacing the industry average. Total deposits stand at CN¥551.8B while loans are at CN¥463.2B, supported by a net interest margin of 1.7%. The bank has an appropriate bad loan allowance at 1.7% and recently completed a fixed-income offering worth CNY10 billion due in 2027 with a coupon rate of 2.12%.

• Click here and access our complete health analysis report to understand the dynamics of Bank of Tianjin.

• Learn about Bank of Tianjin's historical performance.

COSCO SHIPPING International (Hong Kong) (SEHK:517)

Simply Wall St Value Rating: ★★★★★★

Overview: COSCO SHIPPING International (Hong Kong) Co., Ltd., an investment holding company, provides shipping services in the People's Republic of China and internationally with a market cap of HK$6.26 billion.

Operations: COSCO SHIPPING International (Hong Kong) Co., Ltd. generates revenue primarily from Marine Equipment and Spare Parts (HK$1.73 billion), Coatings (HK$992.94 million), and General Trading (HK$478.19 million). The company also earns from Insurance Brokerage (HK$175.51 million) and Ship Trading Agency services (HK$99.97 million).

COSCO SHIPPING International (Hong Kong) recently announced an interim dividend of HK$0.265 per share for the six months ending June 2024, with a record date of September 12 and payment on September 25. The company reported half-year sales of HK$1.75 billion, up from HK$1.62 billion last year, and net income rose to HK$388 million from HK$336 million. Basic earnings per share increased to HKD 0.2647 from HKD 0.2269 a year ago, reflecting solid financial health and growth potential within its sector.

• Navigate through the intricacies of COSCO SHIPPING International (Hong Kong) with our comprehensive health report here.

• Understand COSCO SHIPPING International (Hong Kong)'s track record by examining our Past report.

Next Steps

• Access the full spectrum of 172 SEHK Undiscovered Gems With Strong Fundamentals by clicking on this link.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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