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As global markets experience heightened volatility and economic surprises, the Hong Kong market has shown resilience, particularly in its small-cap sector. Despite broader concerns, this August 2024 presents a unique opportunity to explore undiscovered gems within Hong Kong's dynamic landscape. Identifying strong stocks often involves looking for companies with robust fundamentals and growth potential, especially in times of market uncertainty.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| E-Commodities Holdings | 23.22% | 6.87% | 31.81% | ★★★★★★ |
| S.A.S. Dragon Holdings | 37.35% | 4.13% | 12.06% | ★★★★★★ |
| COSCO SHIPPING International (Hong Kong) | NA | -12.97% | 12.59% | ★★★★★★ |
| PW Medtech Group | NA | 17.93% | -2.70% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| Xin Point Holdings | 2.03% | 9.80% | 15.04% | ★★★★★☆ |
| Hung Hing Printing Group | 3.97% | -2.51% | 33.57% | ★★★★★☆ |
| Changjiu Holdings | 14.09% | 12.87% | -4.74% | ★★★★★☆ |
| Time Interconnect Technology | 212.50% | 27.21% | 15.01% | ★★★★☆☆ |
| Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Tong Ren Tang Technologies
Simply Wall St Value Rating: ★★★★★★
Overview: Tong Ren Tang Technologies Co. Ltd. manufactures and sells Chinese medicine products in Mainland China and internationally, with a market cap of HK$6.67 billion.
Operations: Tong Ren Tang Technologies generates revenue primarily from its own operations (CN¥4.07 billion) and its subsidiary Tong Ren Tang Chinese Medicine (CN¥1.38 billion).
Tong Ren Tang Technologies, a smaller player in the pharmaceutical sector, has shown steady performance with earnings growth of 1.3% over the past year, outpacing the industry's 0.1%. The company's debt to equity ratio has slightly improved from 15.3% to 15.1% over five years, indicating prudent financial management. Additionally, Tong Ren Tang's recent dividend increase to RMB 0.18 per share and appointment of Ernst & Young as auditors reflect its commitment to shareholder value and robust governance practices.
Guoquan Food (Shanghai)
Simply Wall St Value Rating: ★★★★★☆
Overview: Guoquan Food (Shanghai) Co., Ltd. operates as a home meal products company in China with a market cap of HK$8.93 billion.
Operations: The company generates revenue primarily from retail sales through grocery stores, amounting to CN¥6.09 billion.