SEHK Growth Companies With High Insider Ownership Expecting Up To 25% Earnings Growth

As global markets respond to China's robust stimulus measures, the Hong Kong market has seen a notable uptick, with the Hang Seng Index gaining 13%, reflecting increased investor optimism. In this environment of renewed confidence, growth companies with high insider ownership are particularly appealing as they often signal strong internal belief in future performance and potential for significant earnings growth.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

Name	Insider Ownership	Earnings Growth
Laopu Gold (SEHK:6181)	36.4%	32.7%
Akeso (SEHK:9926)	20.5%	54.6%
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%	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%
MicroTech Medical (Hangzhou) (SEHK:2235)	25.6%	105%

Click here to see the full list of 48 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the 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 approximately HK$246.70 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 prominent player in Hong Kong's tech scene, has shown robust financial performance with second-quarter sales reaching CNY 30.98 billion and net income at CNY 3.98 billion, marking significant growth from the previous year. The company's earnings are forecast to grow faster than the market average at 18.7% annually, driven by innovative AI advancements like Kling AI. Despite high insider ownership, there's no substantial insider trading activity reported recently.

• Dive into the specifics of Kuaishou Technology here with our thorough growth forecast report.
• Our valuation report here indicates Kuaishou Technology may be undervalued.

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$941.02 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%

Earnings Growth Forecast: 15.5% p.a.

BYD, a leader in the electric vehicle sector, showcases substantial growth potential with its earnings projected to rise 15.5% annually, outpacing the Hong Kong market average. Recent production and sales data reflect significant year-on-year increases, underscoring strong operational momentum. The strategic partnership with Uber aims to expand BYD's global footprint by deploying 100,000 EVs on Uber's platform. Despite its high insider ownership and robust financial health, no recent insider trading activity has been reported.

• Get an in-depth perspective on BYD's performance by reading our analyst estimates report here.
• The analysis detailed in our BYD valuation report hints at an inflated share price compared to its estimated value.

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$1.22 trillion.

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

Insider Ownership: 11.8%

Earnings Growth Forecast: 26% p.a.

Meituan demonstrates strong growth potential, with earnings forecasted to grow significantly at 26% annually, surpassing the Hong Kong market average. The company has recently completed substantial share buybacks totaling HK$7.17 billion, reflecting confidence in its valuation, which is trading below estimated fair value. Despite high insider ownership, recent months have not seen substantial insider buying. Revenue and net income for the first half of 2024 showed impressive year-on-year growth.

• Click here and access our complete growth analysis report to understand the dynamics of Meituan.
• Our comprehensive valuation report raises the possibility that Meituan is priced higher than what may be justified by its financials.

Seize The Opportunity

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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.

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