Stock Analysis
Uncovering Hidden Gems In Hong Kong For September 2024
Reviewed by Simply Wall St
As global markets navigate a mix of economic indicators and investor sentiment, the Hong Kong market has shown resilience with the Hang Seng Index gaining 2.14% recently. This positive movement offers a promising backdrop for uncovering hidden gems among small-cap stocks in the region. In such an environment, identifying good stocks often involves looking for companies with strong fundamentals, growth potential, and resilience to broader market fluctuations.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| C&D Property Management Group | 1.32% | 37.15% | 41.55% | ★★★★★★ |
| PW Medtech Group | 0.06% | 22.33% | -17.56% | ★★★★★★ |
| COSCO SHIPPING International (Hong Kong) | NA | -3.84% | 16.33% | ★★★★★★ |
| ManpowerGroup Greater China | NA | 14.56% | 1.58% | ★★★★★★ |
| Changjiu Holdings | NA | 11.84% | 2.46% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| Xin Point Holdings | 1.77% | 10.88% | 22.83% | ★★★★★☆ |
| Chongqing Machinery & Electric | 28.07% | 8.82% | 11.12% | ★★★★★☆ |
| Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
| Billion Industrial Holdings | 3.63% | 18.00% | -11.38% | ★★★★☆☆ |
Let's explore several standout options from the results in the screener.
Xin Yuan Enterprises Group (SEHK:1748)
Simply Wall St Value Rating: ★★★★★★
Overview: Xin Yuan Enterprises Group Limited, an investment holding company, provides asphalt tanker and bulk carrier chartering services in the People’s Republic of China, Hong Kong, and Singapore with a market cap of HK$8.80 billion.
Operations: Xin Yuan Enterprises Group generates revenue primarily from asphalt tanker chartering services (HK$55.49 million) and bulk carrier chartering services (HK$3.63 million).
Xin Yuan Enterprises Group's recent performance is noteworthy, with net income for the half-year ending June 30, 2024, reaching US$10.69 million compared to US$5.53 million a year ago. The company also reported sales of US$30.26 million, slightly up from US$30.06 million last year. Additionally, basic earnings per share rose to US$0.0243 from US$0.0126 in the same period last year, driven by a significant net realized gain of approximately US$3.6 million from vessel disposal and increased revenue from asphalt tanker charters.
- Click here to discover the nuances of Xin Yuan Enterprises Group with our detailed analytical health report.
Gain insights into Xin Yuan Enterprises Group's past trends and performance with our Past report.
Dah Sing Banking Group (SEHK:2356)
Simply Wall St Value Rating: ★★★★★☆
Overview: Dah Sing Banking Group Limited is an investment holding company that offers banking, financial, and related services in Hong Kong, Macau, and the People’s Republic of China with a market cap of HK$9.80 billion.
Operations: Dah Sing Banking Group generates revenue primarily from Personal Banking (HK$2.68 billion), Corporate Banking (HK$853.60 million), and Treasury and Global Markets (HK$1.34 billion). Mainland China and Macau Banking also contribute HK$176.27 million to the revenue stream.
Dah Sing Banking Group, a smaller player in the Hong Kong market, has total assets of HK$262.4B and equity of HK$33.6B. With deposits at HK$214.6B and loans totaling HK$141.9B, it boasts a net interest margin of 2%. The bank's earnings surged by 32% last year, outpacing the industry average significantly. Recently announced an interim dividend of HKD 0.27 per share for H1 2024, reflecting robust financial health despite insufficient allowance for bad loans at 1.9%.
- Get an in-depth perspective on Dah Sing Banking Group's performance by reading our health report here.
Understand Dah Sing Banking Group's track record by examining our Past report.
Jinshang Bank (SEHK:2558)
Simply Wall St Value Rating: ★★★★★★
Overview: Jinshang Bank Co., Ltd. provides various banking products and services in China with a market cap of HK$8.64 billion.
Operations: The primary revenue streams for Jinshang Bank are Corporate Banking (CN¥2.66 billion), Retail Banking (CN¥1.10 billion), and Treasury Business (CN¥593.83 million).
Jinshang Bank, with assets totaling CN¥370.9B and equity of CN¥25.3B, reported net income of CN¥1.03B for the first half of 2024, mirroring last year's performance. The bank's total deposits stand at CN¥298.7B while loans amount to CN¥184.7B, with a bad loans ratio at an appropriate 1.8%. Additionally, Jinshang trades significantly below its fair value estimate and has a sufficient allowance for bad loans at 199%.
Summing It All Up
- Dive into all 173 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified here.
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Seeking Other Investments?
- 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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About SEHK:2558
Jinshang Bank
Provides various banking products and services in China.
