Amid a backdrop of fluctuating global markets, Hong Kong's Hang Seng Index has shown resilience, climbing 2.77% recently. This buoyancy in the market provides an intriguing context for examining growth companies with substantial insider ownership, which often suggests confidence from those who know the company best.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: BYD Company Limited operates in the automotive and battery sectors across China, Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$777.07 billion.
Operations: The company's revenue is derived from its automotive and battery sectors across various regions including China, Hong Kong, Macau, Taiwan, and internationally.
Insider Ownership: 30.1%
BYD, a prominent growth company with high insider ownership in Hong Kong, is trading at 47.4% below its estimated fair value, signaling potential undervaluation. While its revenue growth forecast of 14.2% per year trails the significant 20% benchmark, its earnings are expected to outpace the local market with a 15.3% annual increase. Recent substantial sales and production increases reflect robust operational momentum, although no recent insider trading activity was reported to suggest shifts in internal confidence levels.
Overview: Shanghai INT Medical Instruments Co., Ltd. operates in the healthcare sector, specializing in the production and distribution of medical instruments, with a market capitalization of approximately HK$4.68 billion.
Operations: The company generates CN¥641.32 million from its cardiovascular interventional business.
Insider Ownership: 29.8%
Shanghai INT Medical Instruments, a growth-oriented firm with high insider ownership in Hong Kong, is trading at 44.7% below its estimated fair value. Its earnings and revenue are forecasted to grow by 25.41% and 26% per year respectively, outpacing the Hong Kong market's averages of 11.5% for earnings and 7.7% for revenue growth. Despite this robust expansion potential, shareholder dilution occurred over the past year, which may raise concerns about equity value erosion.
Overview: Techtronic Industries Company Limited, with a market cap of HK$175.65 billion, operates globally in designing, manufacturing, and marketing power tools, outdoor power equipment, and floorcare and cleaning products primarily in North America and Europe.
Operations: The company's revenue is mainly derived from two segments: power equipment, generating $12.79 billion, and floorcare & cleaning products, contributing $0.97 billion.
Insider Ownership: 25.4%
Techtronic Industries, with significant insider buying in the last three months, is poised for substantial growth. Earnings are expected to increase by 14.93% annually, outpacing the Hong Kong market's 11.5%. However, its revenue growth forecast at 8.1% annually, though above the market average of 7.7%, does not reach high-growth benchmarks. Recent leadership changes and a new share repurchase program could influence future performance and shareholder value positively.
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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:1211SEHK:1501 SEHK:669
