Stock Analysis
Three SEHK Growth Companies With High Insider Ownership And Up To 55% Earnings Growth
Reviewed by Simply Wall St
Amid a backdrop of global market fluctuations, the Hong Kong stock market has shown resilience, with the Hang Seng Index recently climbing by 2.64%. This uptick is part of a broader trend of recovery hopes fueled by strong holiday spending and positive trade data. In such an environment, growth companies with high insider ownership in Hong Kong present an interesting focus, as these attributes can signal strong confidence in the company's future from those who know it best.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
| Name | Insider Ownership | Earnings Growth |
| New Horizon Health (SEHK:6606) | 16.6% | 61% |
| iDreamSky Technology Holdings (SEHK:1119) | 20.1% | 104.1% |
| Meitu (SEHK:1357) | 38% | 34.3% |
| Adicon Holdings (SEHK:9860) | 22.3% | 29.6% |
| DPC Dash (SEHK:1405) | 38.2% | 91.5% |
| Tian Tu Capital (SEHK:1973) | 34% | 70.5% |
| Zhejiang Leapmotor Technology (SEHK:9863) | 14.2% | 74% |
| Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) | 15.7% | 100.1% |
| Ocumension Therapeutics (SEHK:1477) | 17.7% | 93.7% |
| Beijing Airdoc Technology (SEHK:2251) | 26.4% | 83.9% |
Underneath we present a selection of stocks filtered out by our screen.
China Ruyi Holdings (SEHK:136)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: China Ruyi Holdings Limited operates as an investment holding company focused on content production and online streaming, serving markets in the People's Republic of China, Hong Kong, Europe, and internationally, with a market capitalization of approximately HK$23.64 billion.
Operations: The company generates revenue primarily through its content production business, which brought in CN¥2.23 billion, and its online streaming and gaming sectors, which together accounted for CN¥1.38 billion.
Insider Ownership: 16.3%
Earnings Growth Forecast: 14.7% p.a.
China Ruyi Holdings, while trading at HK$69.4% below its estimated fair value, shows promising growth with forecasted revenue and earnings increases of 27.7% and 14.7% per year respectively, outpacing the Hong Kong market averages. However, concerns arise from a profit margin decline to 19% from last year's 59.8%, shareholder dilution over the past year, and significant one-off items affecting financial results. Recent corporate adjustments include a change in business location and consistent earnings reports indicating stable financial performance despite slight declines in net income and EPS.
- Get an in-depth perspective on China Ruyi Holdings' performance by reading our analyst estimates report here.
- Upon reviewing our latest valuation report, China Ruyi Holdings' share price might be too pessimistic.
SSY Group (SEHK:2005)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: SSY Group Limited is an investment holding company that focuses on the research, development, manufacturing, and sale of pharmaceutical products to hospitals and distributors both in the People's Republic of China and globally, with a market capitalization of HK$14.93 billion.
Operations: The company generates revenue primarily through two segments: Medical Materials, which brought in HK$0.39 billion, and Intravenous Infusion Solution and Others, contributing HK$6.30 billion.
Insider Ownership: 10.4%
Earnings Growth Forecast: 15% p.a.
SSY Group, a growth-oriented company with high insider ownership, is trading at 62.7% below its estimated fair value and shows a robust forecast with earnings expected to grow by 15.03% per year, outpacing the Hong Kong market average of 12%. Recent approvals for multiple pharmaceutical products underline its potential in expanding market reach and enhancing revenue streams which are projected to grow faster than the market at 14% per year. However, its dividend coverage by cash flows appears weak, signaling potential concerns for dividend-focused investors.
- Delve into the full analysis future growth report here for a deeper understanding of SSY Group.
- In light of our recent valuation report, it seems possible that SSY Group is trading behind its estimated value.
Xiabuxiabu Catering Management (China) Holdings (SEHK:520)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Xiabuxiabu Catering Management (China) Holdings Co., Ltd. is an investment holding company that manages a chain of Chinese hotpot restaurants across the People’s Republic of China, with a market capitalization of approximately HK$2.42 billion.
Operations: The company generates revenue primarily through its two brands, with CN¥3.02 billion from Xiabuxiabu and CN¥2.65 billion from Coucou.
Insider Ownership: 38.7%
Earnings Growth Forecast: 55.3% p.a.
Xiabuxiabu Catering Management (China) Holdings, despite recent challenges, is poised for recovery with insider buying trends indicating strong confidence from within. The company reported a significant reduction in net loss to CNY 199.47 million from CNY 353.05 million year-over-year and is trading at a substantial discount, deemed good value against its peers. Expected to turn profitable within three years, its revenue growth forecast at 9.9% annually outpaces the Hong Kong market's 8%. However, it still faces hurdles with a low forecast return on equity of 13.8%.
- Click to explore a detailed breakdown of our findings in Xiabuxiabu Catering Management (China) Holdings' earnings growth report.
- The valuation report we've compiled suggests that Xiabuxiabu Catering Management (China) Holdings' current price could be quite moderate.
Turning Ideas Into Actions
- Explore the 52 names from our Fast Growing SEHK Companies With High Insider Ownership screener here.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.
Ready To Venture Into Other Investment Styles?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- 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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About SEHK:2005
SSY Group
An investment holding company, researches, develops, manufactures, trades in, and sells various pharmaceutical products to hospitals and distributors in the People’s Republic of China and internationally.
