Stock Analysis

SEHK Growth Companies With High Insider Ownership

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The Hong Kong market has recently experienced a significant boost, driven by China's robust stimulus measures aimed at revitalizing its economy. With the Hang Seng Index gaining 13%, investors are increasingly looking for growth opportunities within this vibrant landscape. In such an environment, companies with high insider ownership often stand out as promising investments. High insider ownership can indicate strong confidence from those who know the business best, aligning their interests with shareholders and potentially leading to better performance.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%32.7%
Akeso (SEHK:9926)20.5%54.5%
Fenbi (SEHK:2469)33.1%22.4%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.8%69.8%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Zhejiang Leapmotor Technology (SEHK:9863)15%78.9%
DPC Dash (SEHK:1405)38.1%104.2%
Kindstar Globalgene Technology (SEHK:9960)16.5%88%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%109.2%
Beijing Airdoc Technology (SEHK:2251)29.1%93.4%

Click here to see the full list of 47 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

AAC Technologies Holdings (SEHK:2018)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: AAC Technologies Holdings Inc. is an investment holding company that offers solutions for smart devices across various regions including Mainland China, Hong Kong, Taiwan, other Asian countries, the United States, and Europe with a market cap of HK$37.51 billion.

Operations: The company's revenue segments include CN¥4.07 billion from Optics Products, CN¥7.64 billion from Acoustics Products, CN¥0.92 billion from Sensor and Semiconductor Products, and CN¥8.28 billion from Electromagnetic Drives and Precision Mechanics.

Insider Ownership: 36.7%

AAC Technologies Holdings has shown significant earnings growth, reporting a net income of CNY 537.03 million for H1 2024, up from CNY 150.3 million the previous year. Revenue is forecast to grow at 11.9% annually, outpacing the Hong Kong market's average of 7.3%. Despite a low expected Return on Equity (9.6%), insider ownership remains high, indicating strong confidence from key stakeholders in the company's growth trajectory.

SEHK:2018 Earnings and Revenue Growth as at Sep 2024

Fenbi (SEHK:2469)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Fenbi Ltd. is an investment holding company that offers non-formal vocational education and training services in the People’s Republic of China, with a market cap of HK$6.42 billion.

Operations: The company's revenue segments include CN¥2.47 billion from tutoring services and CN¥648.46 million from book sales.

Insider Ownership: 33.1%

Fenbi Ltd. reported a significant increase in net income for H1 2024, reaching CNY 277.74 million from CNY 81.48 million the previous year, despite a slight decline in sales to CNY 1,630.47 million. The company's earnings are forecast to grow significantly at 22.38% annually over the next three years, outpacing the Hong Kong market average of 12%. Insider buying has been substantial with no major insider sales recently, reflecting strong internal confidence in future growth prospects.

SEHK:2469 Ownership Breakdown as at Sep 2024

Meituan (SEHK:3690)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of HK$979.52 billion.

Operations: The company's revenue segments include CN¥228.13 billion from Core Local Commerce and CN¥77.56 billion from New Initiatives.

Insider Ownership: 11.8%

Meituan's earnings for H1 2024 surged to CNY 16.72 billion from CNY 8.05 billion a year ago, with sales rising to CNY 155.53 billion from CNY 126.58 billion. Earnings are forecast to grow significantly at 26% annually, outpacing the Hong Kong market average of 12%. Recent buybacks totaling HK$7.17 billion indicate strong insider confidence, although no substantial insider buying occurred in the past three months.

SEHK:3690 Ownership Breakdown as at Sep 2024

Summing It All Up

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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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