Undiscovered Gems in Hong Kong To Watch This July 2024

As global markets continue to show mixed performance, the Hong Kong market has been no exception, with small-cap stocks gaining attention amidst broader economic fluctuations. With investors increasingly focused on uncovering value in overlooked areas, this July presents a unique opportunity to explore some of Hong Kong's lesser-known yet promising stocks.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
E-Commodities Holdings	23.22%	6.87%	31.81%	★★★★★★
S.A.S. Dragon Holdings	37.35%	4.13%	12.06%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	-12.97%	12.59%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
JiaXing Gas Group	17.72%	26.04%	22.07%	★★★★★☆
Xin Point Holdings	2.03%	9.80%	15.04%	★★★★★☆
Hung Hing Printing Group	3.97%	-2.51%	33.57%	★★★★★☆
Changjiu Holdings	14.09%	12.87%	-4.74%	★★★★★☆
Mulsanne Group Holding	186.88%	-12.02%	-43.54%	★★★★☆☆
Laopu Gold	8.43%	26.56%	36.28%	★★★★☆☆

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

We're going to check out a few of the best picks from our screener tool.

Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)

Simply Wall St Value Rating: ★★★★★★

Overview: Xiamen Yan Palace Bird's Nest Industry Co., Ltd., together with its subsidiaries, engages in the research, development, production, and marketing of edible bird’s nest (EBN) products in the People’s Republic of China and has a market cap of HK$6.87 billion.

Operations: Xiamen Yan Palace Bird's Nest Industry generates revenue primarily through direct sales to online customers (CN¥824.40 million) and offline distributors (CN¥509.04 million). The company also earns from sales to e-commerce platforms (CN¥262.89 million) and offline customers (CN¥351.17 million).

Xiamen Yan Palace Bird's Nest Industry, a small cap in the food sector, has shown resilience with earnings growth of 4.9% over the past year, outpacing the industry average of 4.1%. The company is debt-free and enjoys high-quality non-cash earnings. Despite challenging conditions in early 2024, revenue is expected to rise by up to RMB 1.09 billion for H1-2024, although net profit may dip by around 40%-50%.

• Click here and access our complete health analysis report to understand the dynamics of Xiamen Yan Palace Bird's Nest Industry.

• Learn about Xiamen Yan Palace Bird's Nest Industry's historical performance.

China Tobacco International (HK) (SEHK:6055)

Simply Wall St Value Rating: ★★★★☆☆

Overview: China Tobacco International (HK) Company Limited engages in the tobacco business, with a market cap of HK$10.89 billion.

Operations: The company's revenue streams include the Brazil Operation Business (HK$766.28 million), Cigarettes Export Business (HK$1.21 billion), New Tobacco Products Export Business (HK$129.98 million), Tobacco Leaf Products Export Business (HK$1.65 billion), and Tobacco Leaf Products Import Business (HK$8.08 billion).

China Tobacco International (HK) has seen earnings grow by 59.7% over the past year, outpacing the Retail Distributors industry’s 48.1%. The company’s net debt to equity ratio stands at a high 70.9%, yet interest payments are well covered by EBIT with a coverage of 16.8x. Trading at 73.8% below its estimated fair value, it offers significant upside potential while maintaining high-quality earnings and positive free cash flow.

• Dive into the specifics of China Tobacco International (HK) here with our thorough health report.

• Review our historical performance report to gain insights into China Tobacco International (HK)'s's past performance.

Sinopec Kantons Holdings (SEHK:934)

Simply Wall St Value Rating: ★★★★★★

Overview: Sinopec Kantons Holdings Limited, an investment holding company, provides crude oil jetty services with a market cap of HK$10.59 billion.

Operations: Revenue from crude oil jetty and storage services is HK$609.87 million.

Sinopec Kantons Holdings, a notable player in Hong Kong's oil and gas sector, has shown impressive growth. Its earnings surged by 198.6% last year, significantly outpacing the industry average of -6.8%. The company is debt-free, a marked improvement from five years ago when its debt-to-equity ratio was 31.4%. Trading at 75.5% below estimated fair value suggests potential for appreciation. A recent leadership change saw Mr. Zhong Fuliang appointed as Chairman following Mr. Chen Yaohuan's retirement.

• Delve into the full analysis health report here for a deeper understanding of Sinopec Kantons Holdings.

• Examine Sinopec Kantons Holdings' past performance report to understand how it has performed in the past.

Taking Advantage

• Click here to access our complete index of 174 SEHK Undiscovered Gems With Strong Fundamentals.
• 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• 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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