Stock Analysis

3 SEHK Growth Companies With Up To 30% Insider Ownership

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As Hong Kong's Hang Seng Index recently experienced a significant surge, climbing 10.2% amid optimism over Beijing's support measures, investors are increasingly focusing on growth companies with substantial insider ownership. In such a volatile market environment, stocks that demonstrate strong insider commitment can be particularly appealing as they often indicate confidence in the company's long-term prospects and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%32.6%
Akeso (SEHK:9926)20.5%54.2%
Fenbi (SEHK:2469)33.1%22.4%
RemeGen (SEHK:9995)16.1%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%
Zhejiang Leapmotor Technology (SEHK:9863)15%69.7%
Beijing Airdoc Technology (SEHK:2251)29.1%93.4%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%109.2%

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.

Kuaishou Technology (SEHK:1024)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kuaishou Technology is an investment holding company that offers live streaming, online marketing, and other services in the People's Republic of China, with a market cap of HK$264.17 billion.

Operations: The company's revenue segments include Domestic operations generating CN¥117.32 billion and Overseas operations contributing CN¥3.57 billion.

Insider Ownership: 19.4%

Kuaishou Technology, a growth company with substantial insider ownership, is experiencing notable revenue and earnings growth. Its recent financial results show significant improvements: Q2 sales reached CNY 30.98 billion, up from CNY 27.74 billion last year, while net income rose to CNY 3.98 billion from CNY 1.48 billion. The company's innovative Kling AI video generation model has gained traction with over one million applications for beta access and ongoing enhancements that improve user experience and engagement globally.

SEHK:1024 Ownership Breakdown as at Oct 2024

BYD (SEHK:1211)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally with a market cap of approximately HK$959.30 billion.

Operations: The company's revenue is primarily derived from Automobiles and Related Products at CN¥507.52 billion, and Mobile Handset Components, Assembly Service, and Other Products at CN¥154.49 billion.

Insider Ownership: 30.1%

BYD demonstrates strong growth potential with significant insider ownership. Its earnings are forecast to grow at 15.5% annually, outpacing the Hong Kong market's 12.4%. Recent sales and production figures show substantial year-over-year increases, with September sales reaching 419,426 units compared to last year's 287,454 units. The strategic partnership with Uber aims to expand BYD's electric vehicle presence globally, enhancing its market position and supporting continued revenue growth projected at 14.3% per year.

SEHK:1211 Earnings and Revenue Growth as at Oct 2024

Meituan (SEHK:3690)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meituan is a technology retail company in the People's Republic of China with a market capitalization of approximately HK$1.27 trillion.

Operations: The company's revenue is primarily derived from its Core Local Commerce segment, which generated CN¥228.13 billion, and its New Initiatives segment, contributing CN¥77.56 billion.

Insider Ownership: 11.8%

Meituan's high insider ownership aligns with its robust growth trajectory. The company reported a significant increase in net income to CNY 16.72 billion for the first half of 2024, doubling from the previous year. Earnings are projected to grow at 26.1% annually, outpacing the Hong Kong market average of 12.4%. Recent share buybacks totaling HKD 7.17 billion reflect confidence in its undervaluation, trading at a discount to estimated fair value by 23.2%.

SEHK:3690 Ownership Breakdown 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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