Undiscovered Gems in Hong Kong to Explore This September 2024

As global markets face heightened volatility and economic uncertainties, the Hong Kong market has shown resilience, particularly in its small-cap segment. Amidst this backdrop, investors may find opportunities in lesser-known stocks that demonstrate strong fundamentals and growth potential. In this environment, identifying a good stock involves looking for companies with solid financial health, innovative business models, and a clear path to profitability.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Lion Rock Group	16.91%	14.33%	10.15%	★★★★★★
Changjiu Holdings	NA	11.84%	2.46%	★★★★★★
Sundart Holdings	0.92%	-2.32%	-3.94%	★★★★★★
China Leon Inspection Holding	8.55%	21.36%	22.77%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
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%	★★★★☆☆

Click here to see the full list of 173 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized 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: IVD Medical Holding generates revenue primarily from its distribution business (CN¥2.86 billion) and after-sales services (CN¥196.47 million), with a smaller contribution from self-branded products (CN¥9.05 million).

IVD Medical Holding, a small cap in Hong Kong's healthcare sector, reported earnings growth of 12.3% over the past year, surpassing the industry average of -11.6%. For the first half of 2024, sales reached CNY 1.35 billion while net income stood at CNY 125.29 million. The company repurchased shares worth HKD 189.64 million recently and has a net profit margin of around 9%. Despite some volatility in its share price over the past three months, IVD Medical continues to show robust financial health and potential for future growth.

• Navigate through the intricacies of IVD Medical Holding with our comprehensive health report here.

• Gain insights into IVD Medical Holding's historical performance by reviewing our past performance report.

YesAsia Holdings (SEHK:2209)

Simply Wall St Value Rating: ★★★★★★

Overview: YesAsia Holdings Limited (SEHK:2209) is an investment holding company involved in the procurement, sale, and trading of Asian fashion and lifestyle, beauty, cosmetics, accessories, and entertainment products with a market cap of approximately HK$2.47 billion.

Operations: YesAsia Holdings generates revenue primarily from the sale of fashion & lifestyle and beauty products, which account for HK$270.65 million, and entertainment products contributing HK$2.56 million.

YesAsia Holdings reported impressive 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. The company is debt-free and has seen its debt-to-equity ratio improve from 2.9% five years ago to zero now. Despite high volatility in share price over the past three months, earnings are forecasted to grow 44.66% annually.

• Get an in-depth perspective on YesAsia Holdings' performance by reading our health report here.

• Evaluate YesAsia Holdings' historical performance by accessing our past performance report.

Jinshang Bank (SEHK:2558)

Simply Wall St Value Rating: ★★★★★★

Overview: Jinshang Bank Co., Ltd. offers a range of banking products and services in China and has a market cap of HK$8.52 billion.

Operations: Jinshang Bank generates revenue primarily from Corporate Banking (CN¥2.66 billion), Retail Banking (CN¥1.10 billion), and Treasury Business (CN¥593.83 million). The bank's diverse revenue streams highlight its focus on both corporate and retail sectors in China.

Jinshang Bank, with total assets of CN¥370.9B and equity of CN¥25.3B, stands out due to its robust financial health. Total deposits amount to CN¥290.3B while loans are at CN¥194.6B, supported by a net interest margin of 1.4%. The bank has an allowance for bad loans at 1.9% and trades significantly below its fair value estimate by 67.9%. Notably, earnings grew by 5.2% over the past year, surpassing industry growth rates.

• Click here to discover the nuances of Jinshang Bank with our detailed analytical health report.

• Explore historical data to track Jinshang Bank's performance over time in our Past section.

Seize The Opportunity

• Discover the full array of 173 SEHK Undiscovered Gems With Strong Fundamentals right here.
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Searching for a Fresh Perspective?

• 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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