As global markets navigate a complex landscape of economic shifts and policy changes, Hong Kong's stock market has faced its own challenges, with the Hang Seng Index recently experiencing a significant decline. In this environment, identifying growth companies with substantial insider ownership can offer insights into potential resilience and confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Beauty Farm Medical and Health Industry Inc. operates in the beauty and health sector, focusing on providing medical aesthetic services, with a market cap of approximately HK$4.05 billion.
Operations: The company's revenue segments include CN¥851.81 million from Aesthetic Medical Services, CN¥125.69 million from Subhealth Medical Services, CN¥1.14 billion from Beauty and Wellness Services - Direct Stores, and CN¥131.48 million from Beauty and Wellness Services - Franchisee and Others.
Insider Ownership: 33.9%
Earnings Growth Forecast: 20.2% p.a.
Beauty Farm Medical and Health Industry is experiencing robust growth, with earnings forecasted to grow significantly at 20.2% annually, outpacing the Hong Kong market. Recent half-year results show sales of CNY 1.14 billion and net income of CNY 115.42 million, reflecting steady year-on-year growth. Despite no recent insider trading activity, the company benefits from strong insider ownership and strategic board changes, including the appointment of Mr. Hu Tenghe as a non-executive director with extensive capital markets experience.
Overview: Lianlian DigiTech Co., Ltd. offers digital payment and value-added services to small and midsized merchants and enterprises in China, with a market cap of HK$10.59 billion.
Operations: The company's revenue is derived from Global Payment (CN¥722.95 million), Domestic Payment (CN¥309.92 million), and Value-Added Services (CN¥153.01 million).
Insider Ownership: 19.7%
Earnings Growth Forecast: 95.7% p.a.
Lianlian DigiTech is poised for substantial growth, with revenue expected to rise 22.3% annually, surpassing the Hong Kong market average. Despite reporting a net loss of CNY 351.29 million for H1 2024, this marks an improvement from the previous year. The company anticipates becoming profitable within three years, indicating above-average market growth potential. No significant insider trading activity has been recorded recently, but high insider ownership suggests alignment with shareholder interests.
Overview: RemeGen Co., Ltd. is a biopharmaceutical company focused on discovering, developing, and commercializing biologics for autoimmune, oncology, and ophthalmic diseases in Mainland China and the United States, with a market cap of approximately HK$14.76 billion.
Operations: The company's revenue from its biopharmaceutical research, service, production, and sales segment totals CN¥1.40 billion.
Insider Ownership: 15.9%
Earnings Growth Forecast: 52.2% p.a.
RemeGen's revenue is forecasted to grow at 26.3% annually, outpacing the Hong Kong market. Despite a net loss of CNY 780.46 million for H1 2024, its innovative drug telitacicept shows promise in treating autoimmune diseases globally, with recent approvals in China and ongoing trials in the U.S. High insider ownership aligns management with shareholder interests, though financial stability remains a concern due to limited cash runway and volatile share prices.
Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
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:2373 SEHK:2598 and SEHK:9995.
