Unveiling SEHK Growth Companies With High Insider Ownership In July 2024

As of July 2024, the Hong Kong market has experienced a notable retreat, with the Hang Seng Index declining by 4.79% amidst global economic uncertainties and regional challenges. This backdrop sets a compelling stage for investors to consider growth companies in Hong Kong that boast high insider ownership—a signal often interpreted as confidence by those who know the company best. In current market conditions where investor sentiment is tested, companies with substantial insider stakes might be better poised to align interests between shareholders and management, potentially leading to more resilient performance in turbulent times.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

Name	Insider Ownership	Earnings 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%	91%
Zylox-Tonbridge Medical Technology (SEHK:2190)	18.7%	79.3%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)	13.9%	100.1%
Beijing Airdoc Technology (SEHK:2251)	28.7%	83.9%
Ocumension Therapeutics (SEHK:1477)	23.3%	93.7%

Click here to see the full list of 53 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Xiamen Yan Palace Bird's Nest Industry Co., Ltd. operates in the research, development, production, and marketing of edible bird’s nest products within the People’s Republic of China, with a market capitalization of approximately HK$6.60 billion.

Operations: The company generates revenue through various channels, including CN¥824.40 million from direct online customer sales, CN¥509.04 million from offline distributors, CN¥351.17 million from direct offline customer sales, CN¥262.89 million through e-commerce platforms, and CN¥16.75 million from online distributors.

Insider Ownership: 26.7%

Xiamen Yan Palace Bird's Nest Industry Co., Ltd. is navigating a complex landscape with a revenue forecast to increase by 10% to 15% year-over-year, reaching up to RMB 1.09 billion in the first half of 2024, despite an anticipated net profit drop of 40% to 50%. The company maintains robust insider ownership and is set for above-market revenue growth at an annual rate of approximately 12.5%, though its earnings growth projection remains modest compared to some peers, at about 14.8% annually. This performance is underpinned by a strong online sales segment and solid corporate governance evidenced by recent amendments in the company's Articles of Association.

• Navigate through the intricacies of Xiamen Yan Palace Bird's Nest Industry with our comprehensive analyst estimates report here.
• In light of our recent valuation report, it seems possible that Xiamen Yan Palace Bird's Nest Industry is trading beyond its estimated value.

Shanghai INT Medical Instruments (SEHK:1501)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shanghai INT Medical Instruments Co., Ltd. operates in the medical instruments sector and has a market capitalization of approximately HK$4.84 billion.

Operations: The cardiovascular interventional business generates CN¥641.32 million in revenue for the company.

Insider Ownership: 29.8%

Shanghai INT Medical Instruments is trading at a significant discount to its estimated fair value, indicating potential for investors. The company's earnings are expected to grow by 25.41% annually, outpacing the Hong Kong market's average. Despite some shareholder dilution last year, revenue growth projections remain robust at 26% per year, also exceeding market norms. However, its forecasted Return on Equity is relatively low at 15.8%. Recently, the company approved a final dividend of HK$0.30 per share.

• Take a closer look at Shanghai INT Medical Instruments' potential here in our earnings growth report.
• The valuation report we've compiled suggests that Shanghai INT Medical Instruments' current price could be inflated.

Adicon Holdings (SEHK:9860)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Adicon Holdings Limited, with a market cap of HK$6.63 billion, operates medical laboratories across the People’s Republic of China.

Operations: The company generates CN¥3.30 billion from its healthcare facilities and services segment.

Insider Ownership: 22.4%

Adicon Holdings is poised for robust growth with earnings expected to increase significantly at 28.33% annually, outstripping the Hong Kong market's average. Although profit margins have dipped to 7.1% from last year's 14%, the company maintains a strong forecasted Return on Equity of 20.4%. Recent strategic moves include a share repurchase program initiated on June 7, 2024, enhancing shareholder value by potentially increasing net asset value and earnings per share.

• Delve into the full analysis future growth report here for a deeper understanding of Adicon Holdings.
• Our expertly prepared valuation report Adicon Holdings implies its share price may be too high.

Next Steps

• Dive into all 53 of the Fast Growing SEHK Companies With High Insider Ownership we have identified here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• 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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