Undiscovered Gems In Hong Kong For August 2024

As global markets navigate volatility and economic uncertainties, the Hong Kong market has shown resilience with the Hang Seng Index gaining 0.85% recently. Amid this backdrop, discovering promising small-cap stocks can be a strategic move for investors seeking growth opportunities in less crowded spaces. Identifying a good stock often involves looking for companies with strong fundamentals, innovative business models, and potential for sustainable growth—qualities that can shine even amid broader market fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
E-Commodities Holdings	23.22%	6.87%	31.81%	★★★★★★
S.A.S. Dragon Holdings	37.35%	4.13%	12.06%	★★★★★★
PW Medtech Group	NA	17.93%	-2.70%	★★★★★★
China Leon Inspection Holding	17.06%	24.06%	27.08%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
JiaXing Gas Group	17.72%	26.04%	22.07%	★★★★★☆
Hung Hing Printing Group	3.97%	-2.51%	33.57%	★★★★★☆
Changjiu Holdings	14.09%	12.87%	-4.74%	★★★★★☆
Mulsanne Group Holding	186.88%	-12.02%	-43.54%	★★★★☆☆
Pizu Group Holdings	48.34%	-4.53%	-19.78%	★★★★☆☆

Click here to see the full list of 174 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

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$10.03 billion.

Operations: Kinetic Development Group generates revenue primarily from the extraction and sale of coal products in China. The company reported a net profit margin of 15.23% for the latest fiscal year.

Kinetic Development Group, a smaller player in Hong Kong's market, has faced challenges with negative earnings growth (-22%) over the past year compared to the Oil and Gas industry average of -6.8%. Despite this, its net debt to equity ratio stands at a satisfactory 4.7%, and interest payments are well covered by EBIT (55.7x coverage). Additionally, the company has reduced its debt to equity ratio from 26.6% to 17.6% over five years and is trading at 21.7% below estimated fair value.

• Dive into the specifics of Kinetic Development Group here with our thorough health report.

• Understand Kinetic Development Group's track record by examining our Past report.

Wasion Holdings (SEHK:3393)

Simply Wall St Value Rating: ★★★★★☆

Overview: Wasion Holdings Limited, with a market cap of HK$6.57 billion, specializes in the research and development, production, and sale of energy metering and energy efficiency management solutions for energy supply industries across various global regions including China, Africa, the United States, Europe, and Asia.

Operations: Wasion Holdings generates revenue from three primary segments: Advanced Distribution Operations (CN¥2.48 billion), Power Advanced Metering Infrastructure (CN¥2.67 billion), and Communication and Fluid Advanced Metering Infrastructure (CN¥2.21 billion).

Wasion Holdings has seen its debt to equity ratio rise from 29.9% to 37.1% over the past five years, yet interest payments remain well covered by EBIT at 14.3x. The company repurchased shares in the past year, indicating confidence in its future prospects. Recent contracts include a EUR 31.62 million smart meter tender in Hungary and additional deals worth USD 15.16 million across Singapore and Malaysia, showcasing robust international demand for its products.

• Delve into the full analysis health report here for a deeper understanding of Wasion Holdings.

• Explore historical data to track Wasion Holdings' performance over time in our Past section.

Sinopec Kantons Holdings (SEHK:934)

Simply Wall St Value Rating: ★★★★★★

Overview: Sinopec Kantons Holdings Limited, an investment holding company, provides crude oil jetty services and has a market cap of HK$11.09 billion.

Operations: The primary revenue stream for Sinopec Kantons Holdings Limited comes from crude oil jetty and storage services, generating HK$609.87 million. The company's net profit margin is a key financial metric to watch.

Sinopec Kantons Holdings, a notable player in Hong Kong's market, has seen its earnings soar by 198.6% over the past year, significantly outpacing the Oil and Gas industry's -6.8%. Trading at 77.9% below its estimated fair value, it offers an attractive entry point for investors. The company is debt-free now compared to five years ago when its debt-to-equity ratio was 31.4%. Recent leadership changes include Mr. Zhong Fuliang stepping in as Chairman on July 19, 2024.

• Click to explore a detailed breakdown of our findings in Sinopec Kantons Holdings' health report.

• Gain insights into Sinopec Kantons Holdings' historical performance by reviewing our past performance report.

Where To Now?

• Click through to start exploring the rest of the 171 SEHK Undiscovered Gems With Strong Fundamentals now.
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Contemplating Other Strategies?

• 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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