Stock Analysis
In recent weeks, the Hong Kong market has faced challenges amid broader global economic concerns, with key indices reflecting a cautious investor sentiment. Despite this backdrop, small-cap stocks in Hong Kong continue to offer unique opportunities for those willing to explore beyond the well-trodden paths. In such a volatile environment, identifying stocks with strong fundamentals and growth potential becomes even more critical. This article will highlight three undiscovered gems in Hong Kong that could stand out in September 2024.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| 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% | ★★★★★☆ |
| TIL Enviro | 47.97% | -23.09% | -8.84% | ★★★★☆☆ |
| Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
| Billion Industrial Holdings | 3.63% | 18.00% | -11.38% | ★★★★☆☆ |
We'll examine a selection from our screener results.
IVD Medical Holding (SEHK:1931)
Simply Wall St Value Rating: ★★★★★☆
Overview: IVD Medical Holding Limited, an investment holding company with a market cap of HK$2.13 billion, distributes in vitro diagnostic (IVD) products in Mainland China and internationally.
Operations: IVD Medical Holding 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 reported a net income of CNY 125.29 million for the first half of 2024, up from CNY 103.01 million last year, with basic earnings per share rising to CNY 0.0927 from CNY 0.0762. The company repurchased shares worth HKD 189.64 million recently and has been growing faster than the healthcare industry, with earnings growth at 12.3% compared to the industry's -11.6%. Despite high volatility in its share price over the past three months, IVD Medical's debt is well-covered by EBIT at a ratio of 20.8x and it holds more cash than total debt.
- Dive into the specifics of IVD Medical Holding here with our thorough health report.
Assess IVD Medical Holding's past performance with our detailed historical performance reports.
YesAsia Holdings (SEHK:2209)
Simply Wall St Value Rating: ★★★★★★
Overview: YesAsia Holdings Limited, an investment holding company, engages in the procurement, sale, and trading of Asian fashion and lifestyle, beauty, cosmetics, accessories, and entertainment products with a market cap of HK$2.59 billion.
Operations: The company generates revenue primarily from two segments: Fashion & Lifestyle and Beauty Products (HK$270.65 million) and Entertainment Products (HK$2.56 million).
YesAsia Holdings has shown remarkable growth, with half-year sales reaching US$163.35 million, up from US$90.66 million last year. Net income surged to US$11.11 million compared to US$1.56 million previously, driven by increased beauty product sales via YesStyle Platforms and AsianBeautyWholesale expansion. Basic earnings per share rose to US$0.028 from US$0.0039 a year ago, reflecting the company's strategic marketing efforts and broader customer base in the B2B segment for Asian beauty products globally.
Billion Industrial Holdings (SEHK:2299)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Billion Industrial Holdings Limited, along with its subsidiaries, develops, manufactures, and sells polyester filament yarns products, polyester products, polyester industrial yarns products, and ES fiber products in China and internationally with a market cap of HK$9.06 billion.
Operations: Billion Industrial Holdings generates revenue primarily from textile manufacturing, amounting to CN¥20.87 billion. The company's net profit margin is a key financial metric to consider.
Billion Industrial Holdings has shown impressive growth with sales reaching CNY 10.62 billion for the half year ending June 30, 2024, up from CNY 7.50 billion a year ago. Net income rose to CNY 327.47 million compared to last year's CNY 201.68 million, reflecting strong performance in recent months. Basic earnings per share increased to CNY 0.15 from CNY 0.1 a year ago, indicating improved profitability and shareholder value in this period.
Turning Ideas Into Actions
- Dive into all 174 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified here.
- Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
- Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.
Want To Explore Some Alternatives?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Billion Industrial Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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About SEHK:2299
Billion Industrial Holdings
Develops, manufactures, and sells polyester filament yarns products, polyester products, polyester industrial yarns products, and ES fiber products in the People’s Republic of China and internationally.
