The Hong Kong market has seen a notable uptick, buoyed by the recent Fed rate cut and positive investor sentiment. Amid this backdrop, growth companies with high insider ownership are gaining attention for their potential stability and alignment of interests between management and shareholders. In the current market environment, stocks with substantial insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the company's operations.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: BYD Company Limited, with a market cap of HK$825.50 billion, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: BYD's revenue segments include CN¥507.52 billion from Automobiles and Related Products and CN¥154.49 billion from Mobile Handset Components, Assembly Service, and Other Products.
Insider Ownership: 30.1%
BYD has demonstrated solid growth with earnings increasing by 36.2% over the past year and forecasted to grow at 15.23% annually, outpacing the Hong Kong market's average. Despite trading below its estimated fair value, it shows strong production and sales figures for 2024, with significant insider ownership indicating confidence in its future prospects. Recent strategic partnerships and global expansions further bolster its position as a key player in the electric vehicle market.
Overview: Meitu, Inc. is an investment holding company that develops products for image, video, and design production to advance digitalization in beauty-related solutions in China and internationally, with a market cap of HK$11.11 billion.
Operations: The company's revenue segments include an Internet Business generating CN¥3.06 billion.
Insider Ownership: 36.2%
Meitu's earnings are forecast to grow 26.6% annually, significantly outpacing the Hong Kong market's average of 11.7%. Despite trading at 75.4% below its estimated fair value, recent earnings reports show a rise in sales to ¥1.62 billion and net income of ¥303.43 million for H1 2024, up from last year. Insider ownership remains high with more shares bought than sold recently, reflecting confidence despite lower profit margins compared to the previous year.
Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of HK$906.22 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: 11.8%
Meituan's earnings are projected to grow 26% annually, surpassing the Hong Kong market's average of 11.8%. Recent financials reveal a significant increase in sales to CNY 155.53 billion and net income to CNY 16.72 billion for H1 2024, compared to last year. The company has been active in share repurchases, completing buybacks worth HKD 7.17 billion this year, indicating strong insider confidence despite modest recent insider buying activity.
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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.
Companies discussed in this article include SEHK:1211 SEHK:1357 and SEHK:3690.
