Undiscovered Gems In Hong Kong For September 2024

As global markets face turbulence and economic indicators signal caution, the Hong Kong market has not been immune to these broader trends. Despite this, opportunities still exist for discerning investors who can identify undervalued small-cap stocks with strong fundamentals and growth potential. In such a climate, finding a good stock often means looking for companies that demonstrate resilience through solid financial health, innovative business models, or unique market positioning.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
E-Commodities Holdings	21.33%	9.04%	28.46%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-3.84%	16.33%	★★★★★★
Changjiu Holdings	NA	11.84%	2.46%	★★★★★★
China Leon Inspection Holding	8.55%	21.36%	22.77%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Xin Point Holdings	1.77%	10.88%	22.83%	★★★★★☆
Chongqing Machinery & Electric	28.07%	8.82%	11.12%	★★★★★☆
HBM Holdings	52.89%	66.59%	31.70%	★★★★★☆
Pizu Group Holdings	48.34%	-4.53%	-19.78%	★★★★☆☆
Billion Industrial Holdings	3.63%	18.00%	-11.38%	★★★★☆☆

Click here to see the full list of 174 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

IVD Medical Holding (SEHK:1931)

Simply Wall St Value Rating: ★★★★★☆

Overview: IVD Medical Holding Limited, with a market cap of HK$2.13 billion, is an investment holding company that distributes in vitro diagnostic (IVD) products in Mainland China and internationally.

Operations: The company generates revenue primarily from its distribution business (CN¥2.86 billion), followed by after-sales services (CN¥196.47 million) and self-branded products (CN¥9.05 million).

IVD Medical Holding, a small cap in the healthcare sector, reported half-year sales of CNY 1.35 billion and net income of CNY 125.29 million, up from CNY 103.01 million last year. Basic earnings per share rose to CNY 0.0927 from CNY 0.0762 a year ago. The company’s debt to equity ratio increased from 5.4% to 23.3% over five years while still holding more cash than total debt, showing strong financial health despite recent share dilution.

• Get an in-depth perspective on IVD Medical Holding's performance by reading our health report here.

• Gain insights into IVD Medical Holding's past trends and performance with our Past report.

YesAsia Holdings (SEHK:2209)

Simply Wall St Value Rating: ★★★★★★

Overview: YesAsia Holdings Limited, with a market cap of HK$2.59 billion, is an investment holding company involved in the procurement, sale, and trading of Asian fashion and lifestyle, beauty, cosmetics, accessories, and entertainment products.

Operations: YesAsia Holdings Limited generates revenue primarily from the sale of fashion, lifestyle, and beauty products (HK$270.65 million) and entertainment products (HK$2.56 million).

YesAsia Holdings has seen notable growth, with net income for the half year ending June 2024 reaching US$11.11 million, up from US$1.56 million a year ago. The company's revenue surged to US$163.35 million from US$90.66 million in the same period last year, driven by increased sales of beauty products through YesStyle Platforms and AsianBeautyWholesale. Basic earnings per share rose to US$0.028 compared to US$0.0039 previously, reflecting strong operational performance and strategic marketing efforts.

• Click here and access our complete health analysis report to understand the dynamics of YesAsia Holdings.

• Explore historical data to track YesAsia Holdings' performance over time in our Past section.

Billion Industrial Holdings (SEHK:2299)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Billion Industrial Holdings Limited, along with its subsidiaries, develops, manufactures, and sells various polyester-related products both in China and internationally, with a market cap of HK$9.06 billion.

Operations: Billion Industrial Holdings generates revenue primarily from its textile manufacturing segment, which reported CN¥20.87 billion. The company has a market cap of HK$9.06 billion and focuses on polyester-related products both domestically and internationally.

Billion Industrial Holdings, a small-cap company in Hong Kong, has shown significant growth with sales reaching CNY 10.62 billion for the first half of 2024, up from CNY 7.50 billion the previous year. Net income rose to CNY 327.47 million compared to last year's CNY 201.68 million, reflecting strong earnings growth of 180% over the past year. The company’s debt-to-equity ratio improved dramatically from 28% to just 3.6% over five years, showcasing effective financial management and reduced leverage risks

• Navigate through the intricacies of Billion Industrial Holdings with our comprehensive health report here.

• Gain insights into Billion Industrial Holdings' historical performance by reviewing our past performance report.

Summing It All Up

• Dive into all 174 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified 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.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Contemplating Other Strategies?

• 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.

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