Undiscovered Gems In Hong Kong For August 2024

Amidst a backdrop of global market recovery and positive economic indicators, the Hong Kong market has shown resilience with the Hang Seng Index up 1.99% recently. This environment presents an opportune moment to explore lesser-known stocks that may offer unique value propositions. In this context, identifying stocks with strong fundamentals and growth potential becomes crucial for investors looking to capitalize on emerging opportunities in Hong Kong.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
E-Commodities Holdings	23.22%	6.87%	31.81%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-12.97%	12.59%	★★★★★★
China Leon Inspection Holding	17.06%	24.06%	27.08%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
JiaXing Gas Group	17.72%	26.04%	22.07%	★★★★★☆
Xin Point Holdings	2.03%	9.80%	15.04%	★★★★★☆
Hung Hing Printing Group	3.97%	-2.51%	33.57%	★★★★★☆
Changjiu Holdings	14.09%	12.87%	-4.74%	★★★★★☆
Mulsanne Group Holding	186.88%	-12.02%	-43.54%	★★★★☆☆
Pizu Group Holdings	48.34%	-4.53%	-19.78%	★★★★☆☆

Click here to see the full list of 175 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Plover Bay Technologies (SEHK:1523)

Simply Wall St Value Rating: ★★★★★☆

Overview: Plover Bay Technologies Limited, an investment holding company with a market cap of HK$4.35 billion, designs, develops, and markets software-defined wide area network routers.

Operations: Plover Bay Technologies generates revenue primarily from the sales of SD-WAN routers, with HK$15.19 million from fixed first connectivity and HK$59.87 million from mobile first connectivity, along with HK$31.86 million from software licenses and warranty and support services.

Plover Bay Technologies, a small cap in the communications sector, has demonstrated robust growth with earnings surging 41.4% over the past year, outpacing the industry’s 10.6%. The company reported half-year sales of US$57.3 million and net income of US$19.1 million as of June 2024, showing significant improvement from US$44.63 million and US$12.32 million respectively a year ago. Additionally, Plover Bay announced an interim dividend of HKD0.1083 per share for June 2024, reflecting its strong financial position and commitment to shareholder returns.

• Click to explore a detailed breakdown of our findings in Plover Bay Technologies' health report.

• Assess Plover Bay Technologies' past performance with our detailed historical performance reports.

Bank of Tianjin (SEHK:1578)

Simply Wall St Value Rating: ★★★★★★

Overview: Bank of Tianjin Co., Ltd. offers a variety of banking and financial services in the People’s Republic of China, with a market cap of approximately HK$10.08 billion.

Operations: Bank of Tianjin generates revenue primarily through interest income, fee and commission income, and trading gains. The company's net profit margin stands at 17.45%.

Bank of Tianjin, with total assets of CN¥871.1B and equity at CN¥66.5B, has seen earnings grow by 22.5% over the past year, outpacing the industry’s 1.6%. The bank's deposits are CN¥551.8B while loans stand at CN¥463.2B, supported by a net interest margin of 1.7%. It maintains a sufficient bad loan allowance at 168%, keeping non-performing loans appropriate at 1.7%. Recent board changes include the appointment of Mr. GU Zhaoyang as an independent non-executive director in July 2024.

• Dive into the specifics of Bank of Tianjin here with our thorough health report.

• Gain insights into Bank of Tianjin's historical performance by reviewing our past performance report.

Time Interconnect Technology (SEHK:1729)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Time Interconnect Technology Limited, an investment holding company with a market cap of HK$7.03 billion, manufactures and sells cable assembly and networking cable products in the People's Republic of China, the United States, the Netherlands, Singapore, the United Kingdom, Hong Kong, Mexico, and internationally.

Operations: Time Interconnect Technology generates revenue primarily from the Server segment (HK$2.98 billion), Digital Cable (HK$1.18 billion), and Cable Assembly (HK$2.31 billion).

Time Interconnect Technology has shown impressive growth, with earnings rising 93.1% over the past year, significantly outpacing the Electrical industry’s 11%. The company’s net debt to equity ratio stands at a high 184.9%, up from 9% five years ago, indicating increased leverage. Despite this, its interest payments are well covered by EBIT at nine times coverage. Recent guidance suggests a potential net profit increase of up to 40% for H1 2024 due to higher revenue from medical equipment and data centre sectors.

• Take a closer look at Time Interconnect Technology's potential here in our health report.

• Examine Time Interconnect Technology's past performance report to understand how it has performed in the past.

Where To Now?

• Reveal the 175 hidden gems among our SEHK Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Curious About Other Options?

• 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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