Stock Analysis

3 SEHK Growth Stocks Insiders Are Backing

SEHK:9926
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As global markets navigate a period of economic uncertainty, the Hong Kong market has shown resilience, with the Hang Seng Index experiencing modest fluctuations. Against this backdrop, growth stocks with high insider ownership can be particularly compelling due to their potential for robust performance and strong alignment between management and shareholder interests. In this article, we will explore three SEHK-listed growth companies that insiders are backing, highlighting their potential in the current market environment.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%34.7%
Akeso (SEHK:9926)20.5%54.7%
Fenbi (SEHK:2469)33.1%22.4%
Zylox-Tonbridge Medical Technology (SEHK:2190)18.8%69.8%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Zhejiang Leapmotor Technology (SEHK:9863)14.7%78.9%
DPC Dash (SEHK:1405)38.2%104.2%
Beijing Airdoc Technology (SEHK:2251)29.1%93.4%
Kindstar Globalgene Technology (SEHK:9960)16.5%88%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%109.2%

Click here to see the full list of 46 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

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 approximately HK$777.88 billion.

Operations: The company's revenue segments include New Initiatives generating CN¥77.56 billion and Core Local Commerce contributing CN¥228.13 billion.

Insider Ownership: 11.6%

Meituan, a prominent growth company with high insider ownership in Hong Kong, has demonstrated significant financial performance. The company reported half-year sales of CNY 155.53 billion and net income of CNY 16.72 billion, reflecting substantial year-over-year growth. Earnings per share doubled from the previous year. Meituan's recent buyback program repurchased over 221 million shares for HKD 14.35 billion, indicating strong confidence in its future prospects despite no substantial insider buying recently.

SEHK:3690 Earnings and Revenue Growth as at Sep 2024
SEHK:3690 Earnings and Revenue Growth as at Sep 2024

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$199.19 billion.

Operations: The company's revenue segments include Power Equipment, generating $13.23 billion, and Floorcare & Cleaning, contributing $965.09 million.

Insider Ownership: 25.4%

Techtronic Industries, with significant insider ownership, reported half-year sales of US$7.31 billion and a net income of US$550.37 million, reflecting solid year-over-year growth. The company announced an interim dividend of HKD 1.08 per share and appointed Steven Philip Richman as an Executive Director. Forecasts indicate revenue growth faster than the Hong Kong market at 8.5% annually, with earnings expected to grow at 15.3% per year, underscoring its robust growth potential despite slower-than-expected substantial insider buying recently.

SEHK:669 Earnings and Revenue Growth as at Sep 2024
SEHK:669 Earnings and Revenue Growth as at Sep 2024

Akeso (SEHK:9926)

Simply Wall St Growth Rating: ★★★★★★

Overview: Akeso, Inc., a biopharmaceutical company, researches, develops, manufactures, and commercializes antibody drugs with a market cap of HK$62.51 billion.

Operations: The company generates CN¥1.87 billion from the research, development, production, and sale of biopharmaceutical products.

Insider Ownership: 20.5%

Akeso, a growth company with high insider ownership, is forecasted to grow earnings by 54.67% annually and become profitable within three years. Despite trading at 45.6% below its estimated fair value and experiencing shareholder dilution over the past year, Akeso's revenue is projected to outpace the Hong Kong market significantly at 33.1% per year. Recent clinical trial results for ivonescimab show promising efficacy in treating various cancers, supporting its long-term growth potential despite recent volatility in share price.

SEHK:9926 Ownership Breakdown as at Sep 2024
SEHK:9926 Ownership Breakdown as at Sep 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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