Stock Analysis

Discover 3 SEHK Growth Stocks With Strong Insider Ownership

SEHK:1211
Source: Shutterstock

The Hong Kong market has experienced a significant boost, with the Hang Seng Index gaining 13% following China's announcement of robust stimulus measures aimed at revitalizing its economy. This surge reflects increased investor confidence and optimism about future growth prospects in the region. In this context, stocks with strong insider ownership can be particularly appealing as they often indicate management's confidence in the company's potential for sustained growth amidst favorable market conditions.

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%
Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)26.7%23.8%
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%69.7%
DPC Dash (SEHK:1405)38.1%104.2%
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 48 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

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 approximately HK$258.56 billion.

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

Insider Ownership: 19.4%

Earnings Growth Forecast: 18.7% p.a.

Kuaishou Technology, a growth company in Hong Kong, has demonstrated strong financial performance with its recent earnings report showing significant increases in sales and net income. The company's innovative AI initiatives, particularly the Kling AI video generation model, have attracted substantial interest and engagement. Despite slower revenue growth forecasts compared to high-growth benchmarks, Kuaishou's earnings are expected to outpace the broader Hong Kong market. Trading below its estimated fair value enhances its investment appeal amidst robust insider ownership.

SEHK:1024 Earnings and Revenue Growth as at Oct 2024
SEHK:1024 Earnings and Revenue Growth 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$943.02 billion.

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

Insider Ownership: 30.1%

Earnings Growth Forecast: 15.5% p.a.

BYD has shown robust growth, with recent reports indicating significant increases in production and sales volumes. The company's earnings for the first half of 2024 rose to CNY 13.63 billion from CNY 10.95 billion a year prior, highlighting strong financial performance. Its strategic partnership with Uber aims to expand electric vehicle adoption globally, enhancing its market presence. Despite revenue growth forecasts below high-growth benchmarks, BYD's earnings are expected to exceed the Hong Kong market average.

SEHK:1211 Earnings and Revenue Growth as at Oct 2024
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 operating in the People's Republic of China with a market capitalization of approximately HK$1.17 trillion.

Operations: The company's revenue is derived from two primary segments: Core Local Commerce, generating CN¥228.13 billion, and New Initiatives, contributing CN¥77.56 billion.

Insider Ownership: 11.8%

Earnings Growth Forecast: 26% p.a.

Meituan is trading at 28.9% below its estimated fair value, with earnings forecast to grow significantly at 26% annually, outpacing the Hong Kong market. Despite no substantial insider buying recently, the company has engaged in significant share buybacks totaling HK$7.17 billion since January 2024. Meituan's half-year results show strong financial performance with sales increasing to CNY 155.53 billion and net income doubling compared to last year, reflecting robust growth potential amidst moderate revenue expansion forecasts.

SEHK:3690 Earnings and Revenue Growth as at Oct 2024
SEHK:3690 Earnings and Revenue Growth as at Oct 2024

Where To Now?

Want To Explore Some Alternatives?

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 BYD might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com