Exploring 3 Undervalued Small Caps In Hong Kong With Insider Buying

In This Article:

As global markets experience fluctuations, Hong Kong's small-cap sector has garnered attention amid broader market sentiment and economic changes. In light of these dynamics, identifying promising stocks often involves looking at companies with strong fundamentals and potential insider confidence, which can be key indicators in the current environment.

Top 10 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Edianyun

NA

0.6x

41.28%

★★★★★☆

Vesync

7.4x

1.1x

-6.60%

★★★★☆☆

Lion Rock Group

5.4x

0.4x

49.96%

★★★★☆☆

Ferretti

10.7x

0.7x

47.91%

★★★★☆☆

Gemdale Properties and Investment

NA

0.3x

40.43%

★★★★☆☆

China Lesso Group Holdings

6.1x

0.4x

-538.15%

★★★☆☆☆

Skyworth Group

6.0x

0.1x

-319.51%

★★★☆☆☆

Lee & Man Paper Manufacturing

7.4x

0.4x

-51.58%

★★★☆☆☆

FriendTimes

NA

1.4x

-229.07%

★★★☆☆☆

Emperor International Holdings

NA

0.9x

21.61%

★★★☆☆☆

Click here to see the full list of 10 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Vesync

Simply Wall St Value Rating: ★★★★☆☆

Overview: Vesync is a company that specializes in the design, development, and sale of smart home appliances and tools, with a market capitalization of approximately HK$3.87 billion.

Operations: The company's revenue has shown a rising trend, reaching $604.75 million recently, with a significant portion of costs attributed to COGS at $311.70 million and operating expenses at $180.14 million. The gross profit margin has increased over time, reaching 48.46%.

PE: 7.4x

Vesync, a player in the Hong Kong small-cap space, recently reported strong financial performance with half-year sales reaching US$296.19 million and net income climbing to US$44.86 million from the previous year. This growth is driven by increased sales outside Amazon and improved operational efficiency. Insider confidence is evident as Zhaojun Chen purchased 200,000 shares valued at approximately HK$828,979 in August 2024. Additionally, Vesync's inclusion in the S&P Global BMI Index highlights its growing market recognition. However, reliance on external borrowing poses some risk to its funding structure.

SEHK:2148 Ownership Breakdown as at Oct 2024
SEHK:2148 Ownership Breakdown as at Oct 2024

Gemdale Properties and Investment

Simply Wall St Value Rating: ★★★★☆☆

Overview: Gemdale Properties and Investment focuses on property development and property investment and management, with a market capitalization of approximately HK$5.68 billion.

Operations: The company's primary revenue streams are from Property Development, generating CN¥17.26 billion, and Property Investment and Management, contributing CN¥1.23 billion. The gross profit margin has shown variability over time, with a recent figure of 10.57%.