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- SEHK:152
Undervalued Small Caps In Hong Kong With Insider Buying For September 2024
Reviewed by Simply Wall St
As global markets navigate a period of economic adjustments, the Hong Kong market has shown resilience amid fluctuating inflation data and shifting investor sentiment. The Hang Seng Index's recent performance reflects broader trends impacting small-cap stocks, making this an opportune time to explore undervalued opportunities with insider buying. In this context, identifying a good stock often involves looking at companies that demonstrate strong fundamentals and potential for growth despite broader market volatility.
Top 5 Undervalued Small Caps With Insider Buying In Hong Kong
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Shenzhen International Holdings | 5.8x | 0.7x | 23.13% | ★★★★★★ |
Shanghai Chicmax Cosmetic | 15.1x | 1.9x | -122.05% | ★★★★☆☆ |
Ferretti | 10.3x | 0.7x | 49.84% | ★★★★☆☆ |
EVA Precision Industrial Holdings | 4.5x | 0.2x | 16.04% | ★★★★☆☆ |
Analogue Holdings | 13.8x | 0.2x | 39.75% | ★★★☆☆☆ |
Skyworth Group | 5.0x | 0.1x | -155.44% | ★★★☆☆☆ |
Lee & Man Paper Manufacturing | 5.9x | 0.4x | -20.57% | ★★★☆☆☆ |
CN Logistics International Holdings | 19.9x | 0.5x | 22.89% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Shenzhen International Holdings (SEHK:152)
Simply Wall St Value Rating: ★★★★★★
Overview: Shenzhen International Holdings operates in logistics, toll roads, and environmental protection sectors, with a market cap of approximately HK$24.36 billion.
Operations: The company generates revenue primarily from Toll Roads and General-Environmental Protection Business (HK$9.75 billion) and Logistics Park Transformation and Upgrading Services (HK$5.59 billion). The gross profit margin has shown fluctuations, with a recent figure of 36.76% as of December 31, 2023.
PE: 5.8x
Shenzhen International Holdings has demonstrated insider confidence with Zhengyu Liu purchasing 693,000 shares for HK$3.97 million in the past year. Despite a slight dip in sales to HK$6.61 billion for H1 2024, net income surged to HK$652.7 million from HK$92.05 million a year ago, reflecting strategic asset transfers and reduced financial costs. Debt coverage remains a concern due to reliance on external borrowing, but earnings are projected to grow annually by 12.86%.
Skyworth Group (SEHK:751)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Skyworth Group is a diversified company operating in smart household appliances, smart systems technology, modern services, and new energy business with a market cap of approximately CN¥7.21 billion.
Operations: Skyworth Group generates revenue primarily from its Smart Household Appliances Business, New Energy Business, Smart Systems Technology Business, and Modern Services. The company's gross profit margin has fluctuated over the years, with a recent figure of 14.36% as of June 2024. Key operating expenses include Sales & Marketing and R&D expenses.
PE: 5.0x
Skyworth Group, a smaller player in Hong Kong's market, has shown signs of being undervalued. For the half year ending June 30, 2024, it reported earnings with net income rising to CNY 384 million from CNY 302 million the previous year. Notably, insider confidence is evident as Chi Shi purchased over two million shares worth approximately CNY 6.3 million between January and June 2024. Skyworth’s expansion into Russia highlights its innovative product line and commitment to technological advancements.
- Navigate through the intricacies of Skyworth Group with our comprehensive valuation report here.
Evaluate Skyworth Group's historical performance by accessing our past performance report.
Ferretti (SEHK:9638)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Ferretti is engaged in the design, construction, and marketing of yachts and recreational boats with a market cap of approximately €1.29 billion.
Operations: The company generates revenue primarily from the design, construction, and marketing of yachts and recreational boats. For the period ending 2024-06-30, it reported a gross profit margin of 36.04% on revenues of €1.30 billion. Net income for this period was €86.46 million, resulting in a net income margin of 6.67%.
PE: 10.3x
Ferretti, a small-cap stock in Hong Kong, has shown promising growth with earnings forecasted to increase by 12.48% annually. Recent insider confidence is evident as executives purchased shares in Q2 2024, indicating faith in the company's future. Despite leadership changes with Mr. Tan and Mr. de Vivo stepping down, Ferretti reported half-year sales of €695 million and net income of €43.86 million, up from last year’s €628 million and €40 million respectively, reflecting solid financial health amidst transition periods.
- Click here and access our complete valuation analysis report to understand the dynamics of Ferretti.
Review our historical performance report to gain insights into Ferretti's's past performance.
Where To Now?
- Click here to access our complete index of 8 Undervalued SEHK Small Caps With Insider Buying.
- Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Searching for a Fresh Perspective?
- 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:152
Shenzhen International Holdings
An investment holding company, invests in, constructs, and operates logistics infrastructure facilities primarily in the People’s Republic of China.