Stock Analysis

3 SEHK Growth Companies With Insider Ownership Expecting Up To 71% Earnings Growth

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As global markets experience varied economic shifts, with notable declines in Hong Kong's Hang Seng Index, investors are keenly observing growth opportunities within the region. In this environment, companies with high insider ownership and significant earnings growth potential stand out as potentially strong contenders for those seeking to navigate market fluctuations effectively.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%33.2%
Akeso (SEHK:9926)20.5%53%
Fenbi (SEHK:2469)33.1%22.4%
RemeGen (SEHK:9995)15.9%52.2%
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)29.4%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.

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

Beauty Farm Medical and Health Industry (SEHK:2373)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beauty Farm Medical and Health Industry Inc. operates in the beauty and health sector, providing medical cosmetology services, with a market cap of HK$4.02 billion.

Operations: The company generates revenue from various segments, including CN¥851.81 million from Aesthetic Medical Services, CN¥125.69 million from Subhealth Medical Services, CN¥1.14 billion from Beauty and Wellness Services - Direct Stores, and CN¥131.48 million from Beauty and Wellness Services - Franchisee and Others.

Insider Ownership: 33.9%

Earnings Growth Forecast: 20.2% p.a.

Beauty Farm Medical and Health Industry shows promising growth potential, with earnings expected to grow significantly at 20.2% annually, outpacing the Hong Kong market. Recent half-year results reported sales of CNY 1.14 billion and net income of CNY 115.42 million, reflecting steady growth. Despite no recent insider trading activity, high insider ownership aligns interests with shareholders. The appointment of Mr. Hu Tenghe as a non-executive director strengthens the board with his extensive capital markets experience.

SEHK:2373 Earnings and Revenue Growth as at Oct 2024

Jiangxi Rimag Group (SEHK:2522)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangxi Rimag Group Co., Ltd. operates medical imaging centers in China and has a market cap of approximately HK$10.87 billion.

Operations: The company's revenue primarily comes from its Medical Labs & Research segment, amounting to CN¥812.85 million.

Insider Ownership: 24.3%

Earnings Growth Forecast: 71.8% p.a.

Jiangxi Rimag Group's growth trajectory is marked by forecasted revenue and earnings growth rates of 30% and 71.8% annually, surpassing the Hong Kong market averages. Despite a decline in profit margins to 0.6%, the company trades at a significant discount to its estimated fair value. Recent half-year results showed sales of CNY 413.71 million, down from CNY 529.78 million, with net income dropping to CNY 3.84 million, highlighting challenges amid rapid expansion expectations without substantial insider trading activity recently noted.

SEHK:2522 Earnings and Revenue Growth as at Oct 2024

Techtronic Industries (SEHK:669)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of approximately HK$207.81 billion.

Operations: The company's revenue is primarily derived from its Power Equipment segment, which generated $13.23 billion, and its Floorcare & Cleaning segment, which contributed $965.09 million.

Insider Ownership: 25.4%

Earnings Growth Forecast: 15.3% p.a.

Techtronic Industries is experiencing solid growth with earnings forecasted to increase by 15.3% annually, outpacing the Hong Kong market average of 12.1%. Recent half-year results reported sales of US$7.31 billion and net income of US$550.37 million, indicating steady financial performance. The company trades at a notable discount to its estimated fair value and has strong insider ownership without recent significant insider trading activity, suggesting confidence in its long-term prospects.

SEHK:669 Earnings and Revenue Growth 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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