Stock Analysis

SEHK Growth Leaders With High Insider Ownership: Spotlight On 3 Top Stocks

SEHK:3690
Source: Shutterstock

Amidst a backdrop of global economic fluctuations and trade tensions, the Hong Kong market has shown resilience, making it an intriguing area for investors looking for growth opportunities. High insider ownership in growth companies can be a signal of confidence in the company's future prospects, aligning closely with investors' interests especially in uncertain times.

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%
Fenbi (SEHK:2469)30.6%43%
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)23.3%93.7%

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

We'll examine a selection from our screener results.

BYD (SEHK:1211)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BYD Company Limited operates in the automobile and battery sectors across China, Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$785.42 billion.

Operations: The company's revenue is primarily derived from its automobile and battery sectors.

Insider Ownership: 30.1%

Return On Equity Forecast: 22% (2027 estimate)

BYD, a prominent player in Hong Kong's growth sector with significant insider ownership, is poised for robust expansion. Its earnings are expected to climb by 15.3% annually, outpacing the local market's 11.4%, with revenue also forecasted to grow faster than the market at 14.2% per year. Recent strategic moves include opening a new plant in Thailand and launching its innovative Dolphin model, highlighting its aggressive global and product expansion strategies which could bolster future growth prospects despite trading at 47.1% below estimated fair value.

SEHK:1211 Earnings and Revenue Growth as at Jul 2024
SEHK:1211 Earnings and Revenue Growth 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$740.55 billion.

Operations: The company's revenue is derived from various technology retail operations within China.

Insider Ownership: 11.5%

Return On Equity Forecast: 20% (2027 estimate)

Meituan, a key entity in Hong Kong's growth-focused market with high insider ownership, is navigating through substantial corporate changes and strategic buybacks. The company recently reported a significant earnings jump to CNY 5.37 billion from CNY 3.36 billion year-over-year and announced a robust share repurchase plan valued at US$2 billion. Despite trading at 65.2% below its estimated fair value, Meituan is forecasted to see earnings grow by 31.3% annually, outstripping the local market's growth rate of 11.4%. However, concerns linger due to substantial insider selling over the past quarter and one-off items impacting financial results.

SEHK:3690 Ownership Breakdown as at Jul 2024
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$179.77 billion, operates globally in designing, manufacturing, and marketing power tools, outdoor power equipment, and floorcare and cleaning products primarily in North America and Europe.

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

Insider Ownership: 25.4%

Return On Equity Forecast: 20% (2026 estimate)

Techtronic Industries, a Hong Kong-based growth company with significant insider ownership, recently initiated a substantial share repurchase program, signaling confidence in its financial health and future prospects. The company's revenue is expected to grow at 8.1% annually, slightly outpacing the local market's 7.8%. Earnings are also set to increase by approximately 14.9% per year, further demonstrating robust financial dynamics compared to the broader Hong Kong market growth of 11.4%. Additionally, following the CEO transition from Joseph Galli Jr. to Steven Richman, strategic continuity and leadership experience are anticipated to drive future performance enhancements.

SEHK:669 Earnings and Revenue Growth as at Jul 2024
SEHK:669 Earnings and Revenue Growth as at Jul 2024

Taking Advantage

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 helping make it simple.

Find out whether Meituan is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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