Stock Analysis

3 SEHK Growth Stocks With High Insider Ownership

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The Hong Kong market has faced mixed sentiments recently, with the Hang Seng Index declining by 0.45% amid weak manufacturing data and broader economic concerns. Despite these challenges, growth companies with high insider ownership often present compelling opportunities due to the confidence and commitment shown by their internal stakeholders. In this article, we will explore three SEHK growth stocks characterized by significant insider ownership, a factor that can signal strong potential for long-term performance even in uncertain market conditions.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
iDreamSky Technology Holdings (SEHK:1119)18.8%104.1%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Tian Tu Capital (SEHK:1973)34%70.5%
Adicon Holdings (SEHK:9860)22.4%28.3%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.7%79.3%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%100.1%
Zhejiang Leapmotor Technology (SEHK:9863)15%74.5%
DPC Dash (SEHK:1405)38.2%91.4%
Ocumension Therapeutics (SEHK:1477)23.3%93.7%
Beijing Airdoc Technology (SEHK:2251)28.6%83.9%

Click here to see the full list of 54 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

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

LifeTech Scientific (SEHK:1302)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: LifeTech Scientific Corporation develops, manufactures, and trades interventional medical devices for cardiovascular and peripheral vascular diseases globally, with a market cap of HK$7.22 billion.

Operations: The company's revenue segments consist of CN¥495.67 million from the Structural Heart Diseases Business, CN¥707.11 million from the Peripheral Vascular Diseases Business, and CN¥64.40 million from the Cardiac Pacing and Electrophysiology Business.

Insider Ownership: 16%

LifeTech Scientific demonstrates strong growth potential with forecasted annual earnings growth of 20.55% and revenue growth of 16.8%, both outpacing the Hong Kong market averages. The recent approval of amendments to its bylaws and promising clinical results for its IBS® Coronary Scaffold further bolster its innovative edge. High insider ownership aligns management interests with shareholders, though return on equity is projected to be modest at 10.8% in three years, indicating room for operational improvement.

SEHK:1302 Earnings and Revenue Growth as at Aug 2024

MGM China Holdings (SEHK:2282)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: MGM China Holdings Limited is an investment holding company that develops, owns, and operates gaming and lodging resorts in the Greater China region, with a market cap of HK$44.23 billion.

Operations: MGM China Holdings generates revenue of HK$24.68 billion from its casinos and resorts in the Greater China region.

Insider Ownership: 10%

MGM China Holdings exhibits growth potential with forecasted annual earnings growth of 18.32% and revenue growth of 8.4%, both above the Hong Kong market averages. High insider ownership aligns management interests with shareholders, enhancing confidence in its strategic direction. Recent issuance of US$500 million in senior notes aims to optimize financial flexibility by repaying revolving credit facility debt, while a share buyback program is set to enhance net asset value per share and earnings per share.

SEHK:2282 Ownership Breakdown as at Aug 2024

Adicon Holdings (SEHK:9860)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Adicon Holdings Limited operates medical laboratories in the People’s Republic of China and has a market cap of HK$7.08 billion.

Operations: Adicon Holdings generates revenue of CN¥3.30 billion from its Healthcare Facilities & Services segment in the People’s Republic of China.

Insider Ownership: 22.4%

Adicon Holdings demonstrates robust growth potential with forecasted annual earnings growth of 28.33% and revenue growth of 14.3%, both outpacing the Hong Kong market averages. High insider ownership aligns management's interests with shareholders, fostering strategic confidence. Recent share repurchase announcements aim to enhance net asset value and earnings per share, while board changes include appointing Mr. ZHOU Mintao as a non-executive director and chairman of the strategy committee, reinforcing governance structures for future growth initiatives.

SEHK:9860 Earnings and Revenue Growth as at Aug 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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