Stock Analysis

SEHK Growth Companies With High Insider Ownership

SEHK:3690
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As global markets react to anticipated rate cuts by the Federal Reserve, Hong Kong's Hang Seng Index has shown resilience amid cautious investor sentiment. In this context, identifying growth companies with high insider ownership can be particularly compelling as it often indicates strong confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

NameInsider OwnershipEarnings Growth
Laopu Gold (SEHK:6181)36.4%41.4%
Akeso (SEHK:9926)20.5%54.7%
iDreamSky Technology Holdings (SEHK:1119)18.8%104.1%
Pacific Textiles Holdings (SEHK:1382)11.2%37.7%
Tian Tu Capital (SEHK:1973)34%70.5%
Adicon Holdings (SEHK:9860)22.4%28.3%
Zhejiang Leapmotor Technology (SEHK:9863)15%76.1%
DPC Dash (SEHK:1405)38.2%106.6%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)13.9%109.2%
Beijing Airdoc Technology (SEHK:2251)28.6%83.9%

Click here to see the full list of 52 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Kingdee International Software Group (SEHK:268)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kingdee International Software Group Company Limited, with a market cap of HK$21.95 billion, operates in the enterprise resource planning business.

Operations: Kingdee International Software Group Company Limited generates revenue primarily from its Cloud Service Business (CN¥4.86 billion) and ERP Business (CN¥1.13 billion).

Insider Ownership: 19.7%

Kingdee International Software Group, a growth company with high insider ownership in Hong Kong, reported half-year sales of CNY 2.87 billion, up from CNY 2.57 billion a year ago. Despite a net loss reduction to CNY 217.85 million from CNY 283.54 million, the company is forecasted to become profitable within three years with annual revenue growth expected at 14%, outpacing the Hong Kong market's average of 7.3%. However, shareholders experienced dilution over the past year and return on equity is projected to be low at 3.7% in three years' time.

SEHK:268 Earnings and Revenue Growth as at Aug 2024
SEHK:268 Earnings and Revenue Growth as at Aug 2024

Meituan (SEHK:3690)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of HK$703.64 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 significant growth company in Hong Kong with high insider ownership, reported strong financial performance for the first half of 2024. Sales increased to CNY 155.53 billion from CNY 126.58 billion a year ago, and net income doubled to CNY 16.72 billion. The company also announced a share repurchase program worth $1 billion, signaling confidence in its valuation. Despite no substantial insider buying recently, earnings are forecasted to grow significantly at 25% annually over the next three years, outpacing market averages.

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

Beijing Fourth Paradigm Technology (SEHK:6682)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beijing Fourth Paradigm Technology Co., Ltd. is an investment holding company that offers platform-centric artificial intelligence (AI) solutions in the People's Republic of China, with a market cap of HK$18.62 billion.

Operations: The company's revenue segments include CN¥3.00 billion from the Sage AI Platform, CN¥448.10 million from Sagegpt Aigs Services, and CN¥1.15 billion from Shift Intelligent Solutions.

Insider Ownership: 22.8%

Beijing Fourth Paradigm Technology, a growth company with high insider ownership in Hong Kong, reported a significant reduction in net loss for the first half of 2024 (CNY 151.6 million vs. CNY 456.07 million last year) alongside increased sales (CNY 1.87 billion). The firm has entered into strategic alliances to develop AI training programs and is expected to become profitable within three years, driven by above-market revenue growth forecasts of 19.6% annually.

SEHK:6682 Earnings and Revenue Growth as at Aug 2024
SEHK:6682 Earnings and Revenue Growth as at Aug 2024

Where To Now?

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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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