The Hong Kong market has shown resilience amid global economic fluctuations, with the Hang Seng Index recently gaining 1.99%, reflecting a cautiously optimistic investor sentiment. As growth stocks continue to outpace value shares globally, insider ownership in companies can be a strong indicator of confidence and potential for future performance. In this article, we will explore three SEHK growth companies where insiders are significantly invested, signaling their belief in the long-term prospects and stability of these firms amidst current market conditions.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
| Name | Insider Ownership | Earnings Growth |
| iDreamSky Technology Holdings (SEHK:1119) | 18.8% | 104.1% |
| Pacific Textiles Holdings (SEHK:1382) | 11.2% | 37.7% |
| Zylox-Tonbridge Medical Technology (SEHK:2190) | 18.7% | 74.6% |
| Tian Tu Capital (SEHK:1973) | 34% | 70.5% |
| Adicon Holdings (SEHK:9860) | 22.4% | 28.3% |
| Zhejiang Leapmotor Technology (SEHK:9863) | 15% | 76.4% |
| Kindstar Globalgene Technology (SEHK:9960) | 16.5% | 48.4% |
| Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) | 13.9% | 100.1% |
| Beijing Airdoc Technology (SEHK:2251) | 28.6% | 83.9% |
| DPC Dash (SEHK:1405) | 38.2% | 91.5% |
Let's explore several standout options from the results in the screener.
BYD (SEHK:1211)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally with a market cap of HK$722.53 billion.
Operations: BYD's revenue segments (in millions of CN¥) are as follows: Automobiles CN¥140.49 billion and Batteries CN¥25.68 billion.
Insider Ownership: 30.1%
Earnings Growth Forecast: 15.2% p.a.
BYD has demonstrated strong growth with significant insider ownership, evidenced by the recent production and sales increases. The company reported a production volume of 1.95 million units and sales of 1.95 million units year-to-date in July 2024, showing substantial growth from the previous year. Strategic partnerships, like the one with Uber to introduce 100,000 electric vehicles globally, further bolster its market position. Earnings are forecasted to grow at an annual rate of 15.22%, outpacing the Hong Kong market's average growth rate.
- Click here and access our complete growth analysis report to understand the dynamics of BYD.
- Our comprehensive valuation report raises the possibility that BYD is priced higher than what may be justified by its financials.
Meituan (SEHK:3690)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Meituan, with a market cap of HK$654.99 billion, operates as a technology retail company in the People’s Republic of China.
Operations: Meituan generates revenue from three main segments: Food Delivery (CN¥96.28 billion), In-store, Hotel & Travel (CN¥32.48 billion), and New Initiatives & Others (CN¥59.39 billion).
Insider Ownership: 11.6%
Earnings Growth Forecast: 31.3% p.a.
Meituan has shown robust growth, with earnings increasing from CNY 3.36 billion to CNY 5.37 billion year-over-year for Q1 2024. The company's revenue also saw a significant rise, reaching CNY 73.28 billion compared to CNY 58.62 billion the previous year. Insider ownership remains high, and recent buyback announcements of up to $2 billion in shares indicate confidence in future performance. Earnings are forecasted to grow at an annual rate of 31.3%, considerably faster than the Hong Kong market average.
- Delve into the full analysis future growth report here for a deeper understanding of Meituan.
- The valuation report we've compiled suggests that Meituan's current price could be inflated.
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 globally, with a market cap of HK$190.58 billion.
Operations: The company's revenue segments include Power Equipment, generating $13.23 billion, and Floorcare & Cleaning, contributing $965.09 million.
Insider Ownership: 25.4%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries has demonstrated solid growth, with recent half-year sales reaching US$7.31 billion and net income at US$550.37 million. The company announced an interim dividend of HKD 1.08 per share and appointed Steven Philip Richman as an Executive Director, highlighting strong leadership continuity. Insider ownership is significant, with more shares bought than sold recently, indicating confidence in future performance. Earnings are forecasted to grow at 15.27% annually, outpacing the Hong Kong market average.
- Dive into the specifics of Techtronic Industries here with our thorough growth forecast report.
- Our valuation report here indicates Techtronic Industries may be overvalued.
Make It Happen
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Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- 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.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.
Valuation is complex, but we're here to simplify it.
Discover if Techtronic Industries might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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About SEHK:669
Techtronic Industries
Engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products in the North America, Europe, and internationally.
Flawless balance sheet with reasonable growth potential.
