The recent Fed rate cut has sparked optimism across global markets, with Hong Kong's Hang Seng Index gaining over 5% in a holiday-shortened week. This positive sentiment underscores the importance of identifying growth companies that not only show strong revenue performance but also have significant insider ownership, indicating confidence from those closest to the business. In this article, we explore three SEHK-listed growth stocks that boast high insider ownership and impressive 15% revenue growth, aligning well with current market dynamics.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Name
Insider Ownership
Earnings Growth
Laopu Gold (SEHK:6181)
36.4%
34.7%
Akeso (SEHK:9926)
20.5%
54.7%
Fenbi (SEHK:2469)
33.1%
22.4%
Zylox-Tonbridge Medical Technology (SEHK:2190)
18.8%
69.8%
Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)
Overview: Meituan is a technology retail company in the People’s Republic of China, with a market cap of approximately HK$832.39 billion.
Operations: The company's revenue segments include CN¥228.13 billion from Core Local Commerce and CN¥77.56 billion from New Initiatives.
Insider Ownership: 11.6%
Revenue Growth Forecast: 12.9% p.a.
Meituan's recent performance highlights its strong growth trajectory, with earnings rising 175.5% over the past year and revenue for the first half of 2024 reaching CNY 155.53 billion. Despite trading at a significant discount to its estimated fair value, Meituan has been actively repurchasing shares, completing buybacks worth HKD 7.17 billion in the first half of 2024 alone. Forecasts suggest continued robust annual profit growth of 25.84%, outpacing market averages in Hong Kong.
Overview: Kingsoft Corporation Limited operates in the entertainment and office software and services sectors across Mainland China, Hong Kong, and internationally with a market cap of HK$30.85 billion.
Operations: The company's revenue segments include Office Software and Services, generating CN¥4.80 billion, and Entertainment Software and Others, contributing CN¥4.18 billion.
Insider Ownership: 20.4%
Revenue Growth Forecast: 12.9% p.a.
Kingsoft has demonstrated substantial growth, with recent earnings for Q2 2024 showing revenue of CNY 2.47 billion and net income of CNY 393.35 million, up significantly from the previous year. The company's earnings are forecast to grow at a robust 24.47% annually, outperforming the Hong Kong market average. Trading at 77.9% below its estimated fair value and with analysts predicting a price rise by 37.6%, Kingsoft presents a compelling growth opportunity despite lower expected revenue growth rates compared to peers.
Overview: Beisen Holding Limited, with a market cap of HK$2.54 billion, provides cloud-based human capital management solutions for enterprises to recruit, evaluate, manage, develop, and retain talents in the People's Republic of China.
Operations: Revenue from cloud-based human capital management solutions and related professional services amounted to CN¥854.74 million.
Insider Ownership: 31.8%
Revenue Growth Forecast: 15% p.a.
Beisen Holding has shown significant revenue growth, reporting CNY 854.74 million for the year ending March 31, 2024, up from CNY 750.91 million a year ago. Despite a net loss of CNY 3.21 billion, the company is expected to become profitable within three years and outpace market revenue growth at an annual rate of 15%. Insider transactions have been minimal recently but lean towards buying rather than selling.
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:3690 SEHK:3888 and SEHK:9669.
