Stock Analysis

Undiscovered Gems in Hong Kong to Explore This October 2024

SEHK:1860
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As global markets react to rising U.S. Treasury yields and economic uncertainties, the Hong Kong market presents unique opportunities for investors seeking to explore lesser-known stocks. In this environment, identifying promising small-cap companies that demonstrate resilience and potential growth can be particularly rewarding, as they may offer untapped value amidst broader market fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
PW Medtech Group0.06%22.33%-17.56%★★★★★★
C&D Property Management Group1.32%37.15%41.55%★★★★★★
ManpowerGroup Greater ChinaNA14.56%1.58%★★★★★★
COSCO SHIPPING International (Hong Kong)NA-3.84%16.33%★★★★★★
China Leon Inspection Holding8.55%21.36%22.77%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
S.A.S. Dragon Holdings60.96%4.62%10.02%★★★★★☆
Billion Industrial Holdings3.63%18.00%-11.38%★★★★★☆
Chongqing Machinery & Electric27.77%8.82%11.12%★★★★☆☆
Pizu Group Holdings48.34%-4.53%-19.78%★★★★☆☆

Click here to see the full list of 168 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Mobvista (SEHK:1860)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Mobvista Inc. is a company that provides advertising and marketing technology services to support the mobile internet ecosystem globally, with a market capitalization of HK$3.63 billion.

Operations: Mobvista generates revenue primarily from its Advertising Technology Services, amounting to $1.17 billion, and a smaller portion from its Marketing Technology Business at $16.98 million.

Mobvista, a promising player in the media industry, has shown remarkable earnings growth of 4320.9% over the past year, surpassing the sector's average of 6.4%. Despite this impressive performance, recent financials reveal net income at US$9.27 million for H1 2024, slightly down from US$10.16 million last year. The company's net debt to equity ratio stands at a satisfactory 4%, indicating prudent financial management amidst volatility in its share price over the past three months. Trading well below estimated fair value by 91.3%, Mobvista presents potential opportunities for discerning investors seeking value in Hong Kong's market landscape.

SEHK:1860 Earnings and Revenue Growth as at Oct 2024
SEHK:1860 Earnings and Revenue Growth as at Oct 2024

Binjiang Service Group (SEHK:3316)

Simply Wall St Value Rating: ★★★★★★

Overview: Binjiang Service Group Co. Ltd. offers property management and related services in the People’s Republic of China, with a market capitalization of HK$5.24 billion.

Operations: Binjiang Service Group generates revenue primarily through property management services in China. The company has a market capitalization of HK$5.24 billion.

Binjiang Service Group, a small player in the property management sector, is showing promising signs with earnings growth of 16.4% over the past year, outperforming the Commercial Services industry. The company trades at 31% below its estimated fair value and remains debt-free, ensuring no concerns over interest payments. Recent results for the first half of 2024 highlight sales reaching CNY 1.65 billion from CNY 1.19 billion last year, while net income rose to CNY 265 million from CNY 231 million. Additionally, an interim dividend of HKD 0.63 per share was announced for shareholders, reflecting robust financial health and shareholder returns.

SEHK:3316 Debt to Equity as at Oct 2024
SEHK:3316 Debt to Equity as at Oct 2024

Global New Material International Holdings (SEHK:6616)

Simply Wall St Value Rating: ★★★★★★

Overview: Global New Material International Holdings Limited is an investment holding company that manufactures and markets pearlescent pigments, functional mica fillers, and related products both in China and globally, with a market cap of HK$4.72 billion.

Operations: The company generates revenue primarily from its PRC business operations, which contribute CN¥1.11 billion. The segment adjustment amounts to CN¥266.09 million.

With its earnings growth of 0.9% surpassing the chemicals industry's -29.6%, Global New Material International Holdings shows resilience in a challenging sector. The company reported a net income of CNY 107 million for the half-year ending June 2024, up from CNY 85 million the previous year, with basic earnings per share rising to CNY 0.09 from CNY 0.07. Recent leadership changes include Mr. Lim Kwang Su and Professor Chen Fadong joining as directors, potentially strengthening governance and innovation capabilities in pearl effect pigments and data science management respectively, setting an optimistic tone for future growth prospects within this niche market space.

SEHK:6616 Earnings and Revenue Growth as at Oct 2024
SEHK:6616 Earnings and Revenue Growth as at Oct 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.

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