Stock Analysis

Top SEHK Growth Companies With High Insider Ownership August 2024

SEHK:2282
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As global markets face heightened volatility and economic uncertainties, the Hong Kong market has shown resilience with steady performance in key indices. In this environment, growth companies with high insider ownership often attract attention due to their potential for robust performance and alignment of interests between management and shareholders. In this article, we will explore three standout growth companies listed on the SEHK that boast significant insider ownership. These companies not only show promise in their respective sectors but also benefit from strong internal commitment to long-term success.

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%
Zhejiang Leapmotor Technology (SEHK:9863)15%74.5%
DPC Dash (SEHK:1405)38.2%91.4%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.7%79.3%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%100.1%
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's a peek at a few of the choices from the screener.

Kuaishou Technology (SEHK:1024)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Kuaishou Technology, an investment holding company with a market cap of HK$186.44 billion, provides live streaming, online marketing, and other services in the People’s Republic of China.

Operations: The company generates revenue from its domestic operations amounting to CN¥114.72 billion and overseas operations totaling CN¥2.94 billion.

Insider Ownership: 19.2%

Earnings Growth Forecast: 22.5% p.a.

Kuaishou Technology, with significant insider ownership, has shown robust growth potential. Recent earnings revealed a net income of CNY 4.12 billion, a stark contrast to last year's loss. The company launched the Kling AI video generation model globally and introduced subscription tiers in mainland China, enhancing user engagement and monetization. Analysts forecast substantial earnings growth of 22.5% annually over the next three years, outpacing the Hong Kong market's average growth rate.

SEHK:1024 Earnings and Revenue Growth as at Aug 2024
SEHK:1024 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 focused on developing, owning, and operating gaming and lodging resorts in the Greater China region, with a market cap of HK$44.84 billion.

Operations: The company's revenue primarily comes from its Casinos & Resorts segment, which generated HK$24.68 billion.

Insider Ownership: 10%

Earnings Growth Forecast: 18.3% p.a.

MGM China Holdings, with substantial insider ownership, is positioned for growth despite some financial challenges. The company recently issued $500 million in senior notes to refinance debt, which will impact interest expenses. Analysts forecast earnings growth of 18.3% annually, outpacing the Hong Kong market average. Trading significantly below its estimated fair value and having initiated a share buyback program to enhance shareholder value, MGM China remains a notable investment in the region.

SEHK:2282 Ownership Breakdown as at Aug 2024
SEHK:2282 Ownership Breakdown as at Aug 2024

Alibaba Health Information Technology (SEHK:241)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, pharmaceutical e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market cap of approximately HK$53.07 billion.

Operations: The company generates revenue primarily from the distribution and development of pharmaceutical and healthcare business, amounting to CN¥27.03 billion.

Insider Ownership: 19.3%

Earnings Growth Forecast: 23.7% p.a.

Alibaba Health Information Technology, with significant insider ownership, reported a strong earnings growth of 64.9% over the past year, reaching CNY 883.48 million in net income for FY2024. Despite a slower revenue growth forecast of 10.9% annually, it still outpaces the Hong Kong market average of 7.4%. Trading at a substantial discount to its fair value and with expected annual profit growth of 23.7%, Alibaba Health remains an attractive prospect for investors focused on high-growth companies in Hong Kong.

SEHK:241 Ownership Breakdown as at Aug 2024
SEHK:241 Ownership Breakdown 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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