Stock Analysis

SEHK Growth Companies With High Insider Ownership

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In recent weeks, the Hong Kong market has seen mixed performance amid global economic uncertainties and weak manufacturing data. Despite this, growth companies with high insider ownership continue to attract attention for their potential resilience and long-term value. A good stock in this environment is often characterized by strong insider ownership, indicating confidence from those closest to the company's operations and future prospects.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
iDreamSky Technology Holdings (SEHK:1119)18.8%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%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.7%79.3%
Zhejiang Leapmotor Technology (SEHK:9863)15%75.5%
DPC Dash (SEHK:1405)38.2%91.4%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%100.1%
Ocumension Therapeutics (SEHK:1477)23.3%93.7%
Beijing Airdoc Technology (SEHK:2251)28.6%83.9%

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

Here's a peek at a few of the choices from the screener.

Kuaishou Technology (SEHK:1024)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Kuaishou Technology, an investment holding company with a market cap of HK$190.79 billion, offers live streaming, online marketing, and other services in the People’s Republic of China.

Operations: The company's revenue segments include Domestic operations generating CN¥114.72 billion and Overseas operations contributing CN¥2.94 billion.

Insider Ownership: 19.2%

Earnings Growth Forecast: 22.4% p.a.

Kuaishou Technology, a growth company with significant insider ownership, has recently launched substantial upgrades to its Kling AI video generation model and introduced a new subscription program. This move aligns with its forecasted revenue and earnings growth rates of 9.7% and 22.4% per year, respectively, outpacing the Hong Kong market. The company also reported strong Q1 earnings and announced a HK$16 billion share repurchase program, reflecting confidence in its valuation and future prospects.

SEHK:1024 Earnings and Revenue Growth as at Aug 2024

ESR Group (SEHK:1821)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ESR Group Limited, with a market cap of HK$46.94 billion, operates in logistics real estate development, leasing, and management across various regions including Hong Kong, China, Japan, South Korea, Australia, New Zealand, Southeast Asia, India, Europe and internationally.

Operations: The company's revenue segments include Fund Management ($774.64 million) and New Economy Development ($105.48 million).

Insider Ownership: 13.1%

Earnings Growth Forecast: 26.3% p.a.

ESR Group has garnered attention due to a privatisation proposal from a consortium led by Warburg Pincus, which may lead to its delisting from HKEX. The company's earnings are forecasted to grow significantly at 26.3% per year, outpacing the Hong Kong market. Despite lower profit margins compared to last year, ESR's founders and insiders maintain substantial ownership, reflecting confidence in its long-term growth potential amidst ongoing strategic changes and board adjustments.

SEHK:1821 Earnings and Revenue Growth as at Aug 2024

Dongyue Group (SEHK:189)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Dongyue Group Limited is an investment holding company that manufactures, distributes, and sells polymers, organic silicone, refrigerants, dichloromethane, polyvinyl chloride (PVC), liquid alkali, and other products in China and internationally with a market cap of HK$10.79 billion.

Operations: The company's revenue segments include CN¥4.55 billion from polymers, CN¥5.48 billion from refrigerants, CN¥4.86 billion from organic silicon, and CN¥1.21 billion from dichloromethane, PVC, and liquid alkali.

Insider Ownership: 15.4%

Earnings Growth Forecast: 35.7% p.a.

Dongyue Group's revenue is forecast to grow at 15.4% per year, outpacing the Hong Kong market's 7.4%. Earnings are expected to increase significantly at 35.7% annually, despite a recent dividend decrease to HK$0.10 per share for 2023. Profit margins have declined from last year's 19.3% to 4.9%, and the Return on Equity is projected to be low at 12.9%. Insider ownership remains high with no substantial insider trading in the past three months.

SEHK:189 Ownership Breakdown as at Aug 2024

Key Takeaways

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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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