Stock Analysis

SEHK Growth Companies With High Insider Ownership And Earnings Growth Up To 31%

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Amidst a backdrop of fluctuating global markets, Hong Kong's stock market has shown resilience, with the Hang Seng Index recently experiencing a notable uptick. This environment may be particularly favorable for growth companies with high insider ownership, which can signal strong confidence in the company's future from those who know it best.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
iDreamSky Technology Holdings (SEHK:1119)20.2%104.1%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Tian Tu Capital (SEHK:1973)34%70.5%
Adicon Holdings (SEHK:9860)22.4%28.3%
Zhejiang Leapmotor Technology (SEHK:9863)15%73.4%
DPC Dash (SEHK:1405)38.2%90.2%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.7%79.3%
Beijing Airdoc Technology (SEHK:2251)28.7%83.9%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%100.1%
Ocumension Therapeutics (SEHK:1477)23.1%93.7%

Click here to see the full list of 54 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Alibaba Health Information Technology (SEHK:241)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, pharmaceutical e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market capitalization of approximately HK$54.52 billion.

Operations: The company's revenue from the distribution and development of pharmaceutical and healthcare business totaled CN¥27.03 billion.

Insider Ownership: 24.2%

Earnings Growth Forecast: 23.7% p.a.

Alibaba Health Information Technology has shown robust growth, with a 65.6% increase in earnings over the past year and sales rising to CNY 27.03 billion. Despite trading at 61.3% below its estimated fair value, insider transactions have not been substantial recently. Forecasted annual earnings growth of 23.7% surpasses the Hong Kong market's average, although revenue growth projections are moderate at 10.9%. Recent presentations and earnings reports underscore its potential amidst challenges like minor shareholder dilution and one-off financial impacts.

SEHK:241 Ownership Breakdown as at Jul 2024

Meituan (SEHK:3690)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Meituan is a technology retail company based in the People's Republic of China, with a market capitalization of approximately HK$729.96 billion.

Operations: The company generates its revenue through technology retail operations in China.

Insider Ownership: 11.5%

Earnings Growth Forecast: 31.3% p.a.

Meituan has demonstrated strong growth, with earnings surging by a very large amount last year and projected to grow 31.26% annually. Despite its revenue growth forecast at 12.8%, slightly below the high-growth benchmark but still above Hong Kong's average of 7.8%, insider buying activity has been muted recently. The company is trading significantly below its estimated fair value, suggesting potential undervaluation. Recent corporate actions include a substantial $2 billion share buyback plan, indicating confidence from management.

SEHK:3690 Ownership Breakdown as at Jul 2024

Techtronic Industries (SEHK:669)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Techtronic Industries Company Limited, with a market cap of HK$181.23 billion, specializes in designing, manufacturing, and marketing power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and other international markets.

Operations: The company's revenue is primarily generated from power equipment, which brought in $12.79 billion, and floorcare and cleaning products, contributing $0.97 billion.

Insider Ownership: 25.4%

Earnings Growth Forecast: 14.9% p.a.

Techtronic Industries, a Hong Kong-based company, shows promising growth with earnings expected to rise by 14.93% annually, outpacing the local market forecast of 11.5%. Insider transactions reveal more buying than selling in recent months, highlighting confidence from within. However, revenue growth at 8.1% annually is modest compared to high-growth benchmarks but still exceeds the market average of 7.8%. Recent leadership changes and a share buyback program initiated on May 21 suggest proactive management and shareholder value focus.

SEHK:669 Ownership Breakdown as at Jul 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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