SEHK Growth Companies With High Insider Ownership

The Hong Kong market has recently experienced a downturn, with the Hang Seng Index retreating by 2.28% amid broader concerns about China's economic outlook and policy measures. Despite these challenges, opportunities remain for discerning investors, particularly in growth companies with high insider ownership. In this article, we will explore three such companies listed on the SEHK that exhibit strong growth potential and significant insider ownership—a combination that can often signal confidence in long-term prospects despite current market volatility.

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%
DPC Dash (SEHK:1405)	38.2%	91.4%
Zylox-Tonbridge Medical Technology (SEHK:2190)	18.7%	79.3%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)	13.9%	100.1%
Beijing Airdoc Technology (SEHK:2251)	28.6%	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 take a closer look at a couple of our picks from the screened companies.

Meitu (SEHK:1357)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meitu, Inc. is an investment holding company that develops products for image, video, and design production to enhance industry digitalization with beauty-related solutions in China and internationally, with a market cap of HK$11.47 billion.

Operations: The company's revenue segments include an Internet Business generating CN¥2.70 billion.

Insider Ownership: 36.6%

Earnings Growth Forecast: 26.4% p.a.

Meitu, Inc. is trading significantly below its estimated fair value and has seen substantial insider buying over the past three months. The company expects annual profit growth of 26.4% and revenue growth of 17.8%, both outpacing the Hong Kong market averages. Recent earnings guidance suggests a net profit increase of at least 30% for H1 2024 compared to last year, highlighting strong financial performance despite some high-quality earnings impacted by one-off items.

• Navigate through the intricacies of Meitu with our comprehensive analyst estimates report here.
• According our valuation report, there's an indication that Meitu's share price might be on the expensive side.

Alibaba Health Information Technology (SEHK:241)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, pharmaceutical e-commerce platforms, and healthcare and digital services in Mainland China and Hong Kong, with a market cap of HK$53.23 billion.

Operations: The company generates CN¥27.03 billion from the distribution and development of its pharmaceutical and healthcare business.

Insider Ownership: 24.2%

Earnings Growth Forecast: 23.7% p.a.

Alibaba Health Information Technology reported strong financial performance, with net income rising to CNY 883.48 million for the year ended March 31, 2024. Earnings are forecast to grow at 23.72% per year, outpacing the Hong Kong market average of 11.3%. Despite trading at a significant discount to its estimated fair value and having more insider buying than selling recently, shareholders experienced dilution over the past year. Revenue growth is projected at a slower rate of 10.9% annually.

• Take a closer look at Alibaba Health Information Technology's potential here in our earnings growth report.
• Our valuation report unveils the possibility Alibaba Health Information Technology's shares may be trading at a premium.

Techtronic Industries (SEHK:669)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of HK$183.43 billion.

Operations: The company's revenue segments include $12.79 billion from Power Equipment and $974.75 million from Floorcare & Cleaning products.

Insider Ownership: 25.4%

Earnings Growth Forecast: 14.9% p.a.

Techtronic Industries is experiencing steady growth, with earnings forecasted to increase by 14.93% annually, outpacing the Hong Kong market's average of 11.3%. Recent insider transactions show more buying than selling, indicating confidence in the company's future. The recent CEO transition and share buyback program aimed at enhancing net asset value per share are significant developments. Despite slower revenue growth projections (8.1% annually), Techtronic remains a solid performer with high insider ownership and robust return on equity forecasts (20.4%).

• Get an in-depth perspective on Techtronic Industries' performance by reading our analyst estimates report here.
• In light of our recent valuation report, it seems possible that Techtronic Industries is trading beyond its estimated value.

Turning Ideas Into Actions

• Delve into our full catalog of 53 Fast Growing SEHK Companies With High Insider Ownership here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Searching for a Fresh Perspective?

• 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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