Stock Analysis

3 High Growth SEHK Stocks With Strong Insider Ownership

Published

In the midst of global market volatility and economic uncertainty, Hong Kong's stock market has shown resilience with the Hang Seng Index gaining 0.85%. Amidst this backdrop, identifying growth companies with strong insider ownership can provide investors with a sense of confidence and alignment of interests between company management and shareholders.

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%74.3%
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%
DPC Dash (SEHK:1405)38.2%91.4%

Click here to see the full list of 51 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.

Meituan (SEHK:3690)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meituan is a technology retail company operating in the People's Republic of China with a market cap of HK$645.86 billion.

Operations: The company's revenue segments (in millions of CN¥) are as follows: Food Delivery: 96,281.60; In-store, Hotel & Travel: 32,472.30; New Initiatives & Others: 45,614.40.

Insider Ownership: 11.6%

Earnings Growth Forecast: 30.8% p.a.

Meituan, a growth company with high insider ownership, is forecasted to see its earnings grow 30.81% annually, outpacing the Hong Kong market's 11.3%. Despite trading at 73.8% below its estimated fair value and recent executive changes, the company reported strong Q1 2024 results with sales of ¥73.28 billion and net income of ¥5.37 billion. Additionally, Meituan announced a $2 billion share repurchase program in June 2024.

SEHK:3690 Ownership Breakdown as at Aug 2024

IGG (SEHK:799)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: IGG Inc, an investment holding company with a market cap of HK$3.07 billion, develops and operates mobile and online games across Asia, North America, Europe, and internationally.

Operations: The company's revenue from the development and operation of online games is HK$5.27 billion.

Insider Ownership: 38.5%

Earnings Growth Forecast: 51.2% p.a.

IGG, trading 36.1% below its estimated fair value, is forecasted to achieve significant annual earnings growth of 51.17%, outpacing the Hong Kong market's 11.3%. Despite slower revenue growth (4.2% annually) compared to the market (7.4%), IGG's return on equity is expected to reach a high of 21.5% in three years. Recent changes include appointing Ms. Feng Li as an independent director and amending company bylaws during their May AGM.

SEHK:799 Earnings and Revenue Growth as at Aug 2024

Linklogis (SEHK:9959)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Linklogis Inc. is an investment holding company offering supply chain finance technology and data-driven solutions in Mainland China, with a market cap of HK$3.03 billion.

Operations: The company's revenue segments include CN¥523.90 million from Supply Chain Finance Technology Solutions - Anchor Cloud, CN¥299.65 million from Supply Chain Finance Technology Solutions - FI Cloud, CN¥35.12 million from Emerging Solutions - Cross-Border Cloud, and CN¥9.10 million from Emerging Solutions - SME Credit Tech Solutions.

Insider Ownership: 27.8%

Earnings Growth Forecast: 138% p.a.

Linklogis is forecasted to achieve annual earnings growth of 137.99%, becoming profitable within three years, which surpasses market expectations. Despite a slower revenue growth rate of 15.2% annually, it still outpaces the Hong Kong market's 7.4%. The company recently commenced a share repurchase program authorized at its June AGM, potentially enhancing net asset value and earnings per share. Additionally, Linklogis declared a special dividend of HKD 0.1 per share for the year ended December 31, 2023.

SEHK:9959 Earnings and Revenue Growth as at Aug 2024

Next Steps

Want To Explore Some Alternatives?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com