Undiscovered Gems in Hong Kong to Watch This September 2024

As global markets grapple with economic slowdowns and investor sentiment remains cautious, Hong Kong's market has not been immune to these broader trends. Despite the challenges, this environment can present unique opportunities for discerning investors seeking undervalued small-cap stocks that are poised for growth. In such a climate, identifying promising stocks often involves looking beyond immediate market fluctuations to focus on companies with strong fundamentals, innovative business models, and solid management teams. Here are three undiscovered gems in Hong Kong that merit attention this September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Lion Rock Group	16.91%	14.33%	10.15%	★★★★★★
C&D Property Management Group	1.32%	37.15%	41.55%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-3.84%	16.33%	★★★★★★
ManpowerGroup Greater China	NA	14.56%	1.58%	★★★★★★
Sundart Holdings	0.92%	-2.32%	-3.94%	★★★★★★
China Leon Inspection Holding	8.55%	21.36%	22.77%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Xin Point Holdings	1.77%	10.88%	22.83%	★★★★★☆
HBM Holdings	52.89%	66.59%	31.70%	★★★★★☆
Pizu Group Holdings	48.34%	-4.53%	-19.78%	★★★★☆☆

Click here to see the full list of 169 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Kinetic Development Group (SEHK:1277)

Simply Wall St Value Rating: ★★★★★☆

Overview: Kinetic Development Group Limited (SEHK:1277) is an investment holding company involved in the extraction and sale of coal products in the People’s Republic of China, with a market cap of HK$10.54 billion.

Operations: Kinetic Development Group generates revenue primarily from the sale of coal products in China. The company reported a gross profit margin of 25.50% for the latest fiscal year, reflecting its cost management and pricing strategies.

Kinetic Development Group, a relatively small player in the Hong Kong market, has shown impressive financial performance. Over the past year, earnings surged by 39.2%, outpacing the Oil and Gas industry's 4.6%. The company reported half-year sales of CNY 2.53 billion and net income of CNY 1.10 billion, compared to CNY 1.49 billion and CNY 570 million respectively from last year. Additionally, Kinetic declared both interim and special dividends totaling HKD 0.08 per share recently.

• Take a closer look at Kinetic Development Group's potential here in our health report.

• Assess Kinetic Development Group's past performance with our detailed historical performance reports.

Wanguo International Mining Group (SEHK:3939)

Simply Wall St Value Rating: ★★★★★☆

Overview: Wanguo International Mining Group Limited is an investment holding company involved in mining, ore processing, and the sale of concentrate products in the People's Republic of China and Solomon Islands with a market cap of HK$7.28 billion.

Operations: The company generates revenue primarily from its Yifeng Project (CN¥749.25 million) and Solomon Project (CN¥912.63 million).

Wanguo International Mining Group, now Wanguo Gold Group, has shown impressive growth with earnings jumping 89.9% over the past year, outpacing industry averages. Recent half-year sales hit CNY 927.86 million, up from CNY 581.19 million last year, while net income rose to CNY 254.27 million compared to CNY 147.11 million previously. The company also declared an interim dividend of HKD 0.12 per share and reported a basic EPS of CNY 0.307 for the period ending June 30, 2024.

• Dive into the specifics of Wanguo International Mining Group here with our thorough health report.

• Explore historical data to track Wanguo International Mining Group's performance over time in our Past section.

AGTech Holdings (SEHK:8279)

Simply Wall St Value Rating: ★★★★★★

Overview: AGTech Holdings Limited operates as an integrated technology and services company in the People’s Republic of China and Macau, with a market cap of HK$2.51 billion.

Operations: AGTech Holdings Limited generates revenue primarily from Lottery Operations (HK$248.76 million) and Electronic Payment and Related Services (HK$364.50 million).

AGTech Holdings recently reported sales of HK$766.58 million for the fifteen months ending March 31, 2024, with net income at HK$31.86 million. The company has no debt, a significant improvement from a debt-to-equity ratio of 13.8% five years ago. Despite high share price volatility over the past three months, AGTech has shown quality earnings and basic earnings per share from continuing operations at HK$0.00279.

• Click here and access our complete health analysis report to understand the dynamics of AGTech Holdings.

• Understand AGTech Holdings' track record by examining our Past report.

Make It Happen

• Unlock more gems! Our SEHK Undiscovered Gems With Strong Fundamentals screener has unearthed 166 more companies for you to explore.Click here to unveil our expertly curated list of 169 SEHK Undiscovered Gems With Strong Fundamentals.
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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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.

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