Stock Analysis

3 SEHK Growth Stocks With High Insider Ownership And Earnings Growth Up To 69%

SEHK:1382
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As global markets navigate escalating tensions in the Middle East and fluctuating oil prices, Hong Kong's market has shown resilience with significant gains, driven by optimism surrounding Beijing’s support measures. In this environment, growth companies with high insider ownership can be particularly appealing as they often align management interests with those of shareholders, potentially fostering earnings growth even amidst broader market uncertainties.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%32.7%
Akeso (SEHK:9926)20.5%52.6%
Fenbi (SEHK:2469)33.1%22.4%
Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)26.7%23.8%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.8%69.8%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
DPC Dash (SEHK:1405)38.1%104.2%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%109.2%
Beijing Airdoc Technology (SEHK:2251)29.1%93.4%
Zhejiang Leapmotor Technology (SEHK:9863)15%69.7%

Click here to see the full list of 47 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Pacific Textiles Holdings (SEHK:1382)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Pacific Textiles Holdings Limited manufactures and trades textile products across multiple countries, including China, Vietnam, and the United States, with a market cap of HK$2.29 billion.

Operations: The company generates HK$4.67 billion in revenue from its manufacturing and trading of textile products segment.

Insider Ownership: 11.2%

Earnings Growth Forecast: 37.7% p.a.

Pacific Textiles Holdings is navigating a challenging period following Typhoon Yagi, which temporarily halted operations at its Vietnam Hai Duong Plant. Despite this setback, the company swiftly reallocated production to other facilities. Revenue growth is forecast at 12% annually, outpacing the Hong Kong market's 7.3%. However, profit margins have declined from last year. Earnings are expected to grow significantly at 37.7% per year, although dividends remain unsustainable based on current earnings and cash flows.

SEHK:1382 Ownership Breakdown as at Oct 2024
SEHK:1382 Ownership Breakdown as at Oct 2024

Zylox-Tonbridge Medical Technology (SEHK:2190)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zylox-Tonbridge Medical Technology Co., Ltd. is a medical device company specializing in neuro- and peripheral-vascular interventional devices, serving both the People's Republic of China and international markets, with a market cap of HK$3.95 billion.

Operations: The company generates revenue from the sales of neurovascular and peripheral-vascular interventional surgical devices, amounting to CN¥663.61 million.

Insider Ownership: 18.8%

Earnings Growth Forecast: 69.8% p.a.

Zylox-Tonbridge Medical Technology is experiencing robust growth, with revenue expected to increase by 23.8% annually, surpassing the Hong Kong market's average. The company recently reported a significant turnaround to profitability, posting CNY 68.87 million in net income for the first half of 2024. It has initiated a share buyback program, potentially enhancing earnings per share and net assets. Despite low forecasted return on equity, analyst consensus suggests a potential stock price rise of 28.1%.

SEHK:2190 Earnings and Revenue Growth as at Oct 2024
SEHK:2190 Earnings and Revenue Growth as at Oct 2024

Laopu Gold (SEHK:6181)

Simply Wall St Growth Rating: ★★★★★★

Overview: Laopu Gold Co., Ltd. designs, manufactures, and sells jewelry products in Mainland China, Hong Kong, and Macau with a market cap of HK$28.66 billion.

Operations: The company's revenue segment includes Jewelry & Watches, generating CN¥5.28 billion.

Insider Ownership: 36.4%

Earnings Growth Forecast: 32.7% p.a.

Laopu Gold shows strong growth potential, with earnings projected to increase by 32.7% annually, outpacing the Hong Kong market. Recent financial results reveal a significant rise in revenue and net income for the first half of 2024, with sales reaching CNY 3.52 billion and net income at CNY 587.81 million. Despite trading at a substantial discount to its estimated fair value, recent amendments to company bylaws reflect ongoing regulatory alignment efforts and structural adjustments following share capital changes.

SEHK:6181 Ownership Breakdown as at Oct 2024
SEHK:6181 Ownership Breakdown as at Oct 2024

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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.

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