3 Undiscovered Gems In Hong Kong With Strong Potential

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As global markets navigate a mix of economic signals and investor sentiment, the Hong Kong market has shown resilience, with the Hang Seng Index recently gaining over 2%. This positive movement comes amid broader concerns about China's economic outlook and corporate earnings that have missed expectations. In this environment, identifying stocks with strong fundamentals and growth potential is crucial. Here are three undiscovered gems in Hong Kong that stand out for their promising prospects.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

S.A.S. Dragon Holdings

60.96%

4.62%

10.02%

★★★★★★

Lion Rock Group

16.91%

14.33%

10.15%

★★★★★★

Changjiu Holdings

NA

11.84%

2.46%

★★★★★★

Sundart Holdings

0.92%

-2.32%

-3.94%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Xin Point Holdings

1.77%

10.88%

22.83%

★★★★★☆

Chongqing Machinery & Electric

28.07%

8.82%

11.12%

★★★★★☆

HBM Holdings

52.89%

66.59%

31.70%

★★★★★☆

Time Interconnect Technology

212.50%

27.21%

15.01%

★★★★☆☆

Billion Industrial Holdings

3.63%

18.00%

-11.38%

★★★★☆☆

Click here to see the full list of 174 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

IVD Medical Holding

Simply Wall St Value Rating: ★★★★★☆

Overview: IVD Medical Holding Limited is an investment holding company that distributes in vitro diagnostic (IVD) products in Mainland China and internationally, with a market cap of HK$2.13 billion.

Operations: IVD Medical Holding generates revenue primarily from its Distribution Business (CN¥2.86 billion), followed by After-sales services (CN¥196.47 million) and Self-Branded Products Business (CN¥9.05 million).

IVD Medical Holding, a small-cap player in the healthcare sector, has shown promising growth with earnings climbing by 12.3% over the past year, outpacing the industry average of -11.6%. The company reported net income of CNY 125.29 million for H1 2024, up from CNY 103.01 million last year, reflecting high-quality earnings and strong EBIT coverage of interest payments at 20.8x. However, shareholders faced dilution in the past year due to a follow-on equity offering worth HKD 189.64 million in June 2024.

SEHK:1931 Earnings and Revenue Growth as at Sep 2024
SEHK:1931 Earnings and Revenue Growth as at Sep 2024

Dah Sing Banking Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Dah Sing Banking Group Limited is an investment holding company that offers banking, financial, and related services in Hong Kong, Macau, and the People's Republic of China with a market cap of HK$9.69 billion.