As global markets navigate a complex landscape of economic shifts, the Hong Kong market has experienced its own set of challenges, with the Hang Seng Index recently witnessing a notable decline. Amidst this backdrop, growth companies with high insider ownership can offer unique insights into potential investment opportunities, as they often reflect a strong alignment between management and shareholder interests.
Name | Insider Ownership | Earnings Growth |
Laopu Gold (SEHK:6181) | 36.4% | 33.2% |
Akeso (SEHK:9926) | 20.5% | 53% |
Fenbi (SEHK:2469) | 33.1% | 22.4% |
Zylox-Tonbridge Medical Technology (SEHK:2190) | 18.8% | 69.8% |
Pacific Textiles Holdings (SEHK:1382) | 11.2% | 37.7% |
DPC Dash (SEHK:1405) | 38.1% | 106.5% |
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315) | 13.9% | 109.2% |
Beijing Airdoc Technology (SEHK:2251) | 29.4% | 93.4% |
Zhejiang Leapmotor Technology (SEHK:9863) | 15% | 69.7% |
MicroTech Medical (Hangzhou) (SEHK:2235) | 25.8% | 105% |
Let's dive into some prime choices out of the screener.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Vobile Group Limited is an investment holding company that offers software as a service for digital content asset protection and transactions across the United States, Japan, Mainland China, and internationally, with a market cap of HK$5.77 billion.
Operations: The company's revenue primarily comes from its software as a service offerings, generating HK$2.18 billion.
Insider Ownership: 23.1%
Earnings Growth Forecast: 68.5% p.a.
Vobile Group is experiencing significant earnings growth, forecasted at 68.5% annually, outpacing the Hong Kong market's average. Despite recent shareholder dilution and high share price volatility, revenue is expected to grow at 21.4% per year. The company has initiated a share buyback program authorized to repurchase up to 10% of its issued capital, potentially enhancing net asset value and earnings per share. Recent half-year results show improved sales and net income compared to last year.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of approximately HK$207.81 billion.
Operations: The company's revenue is primarily derived from its Power Equipment segment at $13.23 billion and the Floorcare & Cleaning segment at $965.09 million.
Insider Ownership: 25.4%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries is trading at 23.4% below its estimated fair value, offering potential upside. The firm's earnings are projected to grow by 15.32% annually, surpassing the Hong Kong market's average growth rate of 12%. Recently appointed independent directors bring extensive financial expertise, potentially strengthening governance and strategic direction. The company reported half-year sales of US$7.31 billion and net income of US$550 million, reflecting solid performance with ongoing revenue growth outpacing the market average.
Simply Wall St Growth Rating: ★★★★★★
Overview: Akeso, Inc. is a biopharmaceutical company engaged in the research, development, manufacturing, and commercialization of antibody drugs with a market cap of HK$57.06 billion.
Operations: The company's revenue from the research, development, production, and sale of biopharmaceutical products amounts to CN¥1.87 billion.
Insider Ownership: 20.5%
Earnings Growth Forecast: 53% p.a.
Akeso is poised for significant growth, driven by its innovative pipeline and high insider ownership. The company recently announced promising results from its Phase 3 study on cadonilimab, enhancing treatment options for advanced cervical cancer. With a follow-on equity offering of HK$1.94 billion, Akeso aims to bolster its financial position. Despite recent revenue declines to CNY 1.02 billion and a net loss of CNY 238.59 million, forecasted annual earnings growth of 53% suggests future profitability potential.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com