The Hong Kong market has been navigating a challenging landscape, with the Hang Seng Index recently experiencing a slight decline amid weak inflation data and concerns about economic growth. Despite these headwinds, growth stocks remain an area of interest for investors looking to capitalize on potential long-term gains. In this context, companies with high insider ownership often signal strong confidence from those who know the business best. Here are three SEHK growth stocks where insider ownership reaches up to 29%, offering a unique blend of potential and commitment from key stakeholders.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Shanghai INT Medical Instruments Co., Ltd. (SEHK:1501) specializes in the development, manufacturing, and sale of medical instruments and has a market cap of HK$4.97 billion.
Operations: Shanghai INT Medical Instruments' revenue segments include CN¥718.71 million from the Cardiovascular Interventional Business.
Insider Ownership: 29.6%
Shanghai INT Medical Instruments is trading at 49.7% below its estimated fair value, with earnings expected to grow significantly at 27.2% per year over the next three years. Recent earnings reports show a notable increase in sales (CNY 392.32 million) and net income (CNY 100.54 million) for the first half of 2024 compared to last year, reflecting robust revenue growth forecasted at 28.7% annually, outpacing the Hong Kong market's growth rate of 7.3%.
Overview: Shenzhen Pagoda Industrial (Group) Corporation Limited, with a market cap of HK$2.45 billion, operates as a fruit retailer in China, Indonesia, Singapore, Hong Kong, and internationally.
Operations: The company's revenue segments include Trading (CN¥1.15 billion) and Franchising (CN¥9.88 billion).
Insider Ownership: 26.8%
Shenzhen Pagoda Industrial (Group) is forecasted to achieve significant annual earnings growth of 37.94% over the next three years, outpacing the Hong Kong market's 11.7%. Despite this, recent financial results show a decline in sales to CNY 5.59 billion and net income to CNY 88.51 million for H1 2024 compared to last year, attributed to increased investments and weak consumption power. Insider ownership remains high with more shares bought than sold recently, though not substantially.
Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of approximately HK$809.17 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's earnings are projected to grow significantly at 25.8% annually, outpacing the Hong Kong market's 11.7%. Recent financials show a strong performance with H1 2024 sales of CNY 155.53 billion and net income of CNY 16.72 billion, both more than doubling from last year. Insider ownership remains high, though recent insider buying isn't substantial. The company has actively repurchased shares worth HK$14.35 billion this year, enhancing shareholder value through buybacks.
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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:1501 SEHK:2411 and SEHK:3690.
