Stock Analysis

3 SEHK Growth Stocks With High Insider Ownership And 14% Earnings Growth

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As global markets react to anticipated interest rate cuts and economic data, the Hong Kong market has shown resilience, with the Hang Seng Index advancing despite broader regional declines. In this context, identifying growth companies with high insider ownership can be particularly compelling for investors seeking robust earnings growth and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%41.4%
iDreamSky Technology Holdings (SEHK:1119)18.8%104.1%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.7%70.6%
Tian Tu Capital (SEHK:1973)34%70.5%
Adicon Holdings (SEHK:9860)22.4%28.3%
Zhejiang Leapmotor Technology (SEHK:9863)15%76.1%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%100.1%
Beijing Airdoc Technology (SEHK:2251)28.6%83.9%
DPC Dash (SEHK:1405)38.2%92.6%

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

Let's take a closer look at a couple of our picks from the screened companies.

BYD (SEHK:1211)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BYD Company Limited, with a market cap of HK$716.56 billion, operates in the automobiles and batteries sector across China, Hong Kong, Macau, Taiwan, and internationally.

Operations: BYD's revenue segments include CN¥267.69 billion from automobiles and CN¥59.14 billion from batteries.

Insider Ownership: 30.1%

Earnings Growth Forecast: 15.2% p.a.

BYD, known for its substantial insider ownership, has shown impressive growth with earnings increasing by 52.7% over the past year and a forecasted annual profit growth of 15.2%. Recent half-year results reported sales of CNY 294.77 billion and net income of CNY 13.63 billion, reflecting strong performance. Additionally, BYD's strategic partnership with Uber to introduce electric vehicles globally underscores its commitment to expansion and innovation in the EV market.

SEHK:1211 Ownership Breakdown as at Aug 2024

Meitu (SEHK:1357)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meitu, Inc. is an investment holding company that develops products to streamline image, video, and design production for beauty-related digital solutions in China and internationally, with a market cap of HK$10.66 billion.

Operations: The company's revenue primarily comes from its Internet Business segment, which generated CN¥2.70 billion.

Insider Ownership: 36.6%

Earnings Growth Forecast: 25.3% p.a.

Meitu, with significant insider ownership, reported robust earnings growth of 301.8% over the past year and is expected to continue with a forecasted annual profit growth of 25.34%. Recent half-year results showed sales rising to CNY 1.62 billion and net income increasing to CNY 303.43 million. Despite substantial insider selling in the last quarter, Meitu's revenue is projected to grow faster than the Hong Kong market at 17.9% annually.

SEHK:1357 Earnings and Revenue Growth as at Aug 2024

China Ruyi Holdings (SEHK:136)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: China Ruyi Holdings Limited, with a market cap of HK$26.76 billion, is an investment holding company involved in content production and online streaming across the People's Republic of China, Hong Kong, Europe, and internationally.

Operations: The company's revenue segments comprise CN¥2.23 billion from content production and CN¥1.38 billion from online streaming and gaming businesses.

Insider Ownership: 15.1%

Earnings Growth Forecast: 14.8% p.a.

China Ruyi Holdings, with high insider ownership, recently adopted new bylaws and completed a HK$4 billion equity offering. Despite a significant drop in profit margins from 59.8% to 19%, its earnings are forecasted to grow by 14.84% annually, outpacing the Hong Kong market's 10.8%. Trading at a substantial discount to estimated fair value and expecting revenue growth of 27.7% per year, China Ruyi remains an intriguing prospect despite past shareholder dilution and low future return on equity forecasts.

SEHK:136 Earnings and Revenue Growth as at Aug 2024

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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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