Discovering Undiscovered Gems in Hong Kong This August 2024

As global markets experience heightened volatility and economic surprises, the Hong Kong market has shown resilience, particularly in its small-cap sector. Despite broader concerns, this August 2024 presents a unique opportunity to explore undiscovered gems within Hong Kong's dynamic landscape. Identifying strong stocks often involves looking for companies with robust fundamentals and growth potential, especially in times of market uncertainty.

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%	★★★★★★
S.A.S. Dragon Holdings	37.35%	4.13%	12.06%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-12.97%	12.59%	★★★★★★
PW Medtech Group	NA	17.93%	-2.70%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
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%	★★★★★☆
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 173 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Tong Ren Tang Technologies (SEHK:1666)

Simply Wall St Value Rating: ★★★★★★

Overview: Tong Ren Tang Technologies Co. Ltd. manufactures and sells Chinese medicine products in Mainland China and internationally, with a market cap of HK$6.67 billion.

Operations: Tong Ren Tang Technologies generates revenue primarily from its own operations (CN¥4.07 billion) and its subsidiary Tong Ren Tang Chinese Medicine (CN¥1.38 billion).

Tong Ren Tang Technologies, a smaller player in the pharmaceutical sector, has shown steady performance with earnings growth of 1.3% over the past year, outpacing the industry's 0.1%. The company's debt to equity ratio has slightly improved from 15.3% to 15.1% over five years, indicating prudent financial management. Additionally, Tong Ren Tang's recent dividend increase to RMB 0.18 per share and appointment of Ernst & Young as auditors reflect its commitment to shareholder value and robust governance practices.

• Delve into the full analysis health report here for a deeper understanding of Tong Ren Tang Technologies.

• Learn about Tong Ren Tang Technologies' historical performance.

Guoquan Food (Shanghai) (SEHK:2517)

Simply Wall St Value Rating: ★★★★★☆

Overview: Guoquan Food (Shanghai) Co., Ltd. operates as a home meal products company in China with a market cap of HK$8.93 billion.

Operations: The company generates revenue primarily from retail sales through grocery stores, amounting to CN¥6.09 billion.

Guoquan Food (Shanghai) has shown notable progress with a 4.2% earnings growth over the past year, outpacing the Consumer Retailing industry’s 1.6%. The company repurchased shares in 2024, indicating confidence in its future prospects. Levered free cash flow turned positive at RMB543.34M as of Dec 2023, compared to negative figures in previous years. Recent changes include amendments to its Articles of Association and a final cash dividend of RMB0.0521 per share for FY2023, payable by August 29, 2024.

• Get an in-depth perspective on Guoquan Food (Shanghai)'s performance by reading our health report here.

• Assess Guoquan Food (Shanghai)'s past performance with our detailed historical performance reports.

Sinopec Kantons Holdings (SEHK:934)

Simply Wall St Value Rating: ★★★★★★

Overview: Sinopec Kantons Holdings Limited, an investment holding company, provides crude oil jetty services and has a market cap of HK$10.94 billion.

Operations: The company generates revenue primarily from crude oil jetty and storage services, totaling HK$609.87 million.

Sinopec Kantons Holdings, a lesser-known entity in Hong Kong's oil and gas sector, has shown impressive earnings growth of 198.6% over the past year, significantly outpacing the industry average of -6.8%. The company is debt-free now compared to five years ago when its debt to equity ratio was 31.4%, highlighting strong financial management. Trading at 78.3% below its estimated fair value, Sinopec Kantons offers potential for substantial upside with high-quality earnings and positive free cash flow.

• Take a closer look at Sinopec Kantons Holdings' potential here in our health report.

• Evaluate Sinopec Kantons Holdings' historical performance by accessing our past performance report.

Next Steps

• Dive into all 173 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready To Venture Into Other Investment Styles?

• 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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