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Amid a backdrop of global market fluctuations and specific downturns in Hong Kong's Hang Seng Index, investors might find potential opportunities in undervalued small-cap stocks. These smaller companies, often less scrutinized by mainstream analysts, can offer unique growth prospects especially when insider actions suggest confidence in the firm's future.
Top 10 Undervalued Small Caps With Insider Buying In Hong Kong
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Xtep International Holdings | 11.0x | 0.8x | 41.23% | ★★★★★☆ |
| Wasion Holdings | 12.2x | 0.9x | 25.28% | ★★★★☆☆ |
| Sany Heavy Equipment International Holdings | 8.0x | 0.7x | -24.10% | ★★★★☆☆ |
| Nissin Foods | 15.0x | 1.3x | 36.46% | ★★★★☆☆ |
| China Overseas Grand Oceans Group | 2.8x | 0.1x | -1.91% | ★★★★☆☆ |
| Transport International Holdings | 11.4x | 0.6x | 44.97% | ★★★★☆☆ |
| Abbisko Cayman | NA | 102.8x | 32.13% | ★★★★☆☆ |
| Giordano International | 8.7x | 0.8x | 35.93% | ★★★☆☆☆ |
| China Leon Inspection Holding | 10.5x | 0.8x | 22.65% | ★★★☆☆☆ |
| China Lesso Group Holdings | 3.8x | 0.3x | -71.70% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
iDreamSky Technology Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: iDreamSky Technology Holdings is a company that specializes in game and information services, including SaaS and other related services.
Operations: Game and Information Services, including SaaS and related services, generated CN¥1.92 billion in revenue. The company's gross profit margin stood at 35.14% as of the latest reporting period.
PE: -9.5x
iDreamSky Technology Holdings has recently demonstrated insider confidence, with significant share purchases made by insiders, signaling strong belief in the company's prospects. Despite facing shareholder dilution over the past year, earnings are anticipated to surge by 104% annually. Operating solely on external borrowing heightens financial risk but also underscores a lean operational model free of customer deposit liabilities. With its upcoming annual general meeting and Q1 results report, stakeholders are keenly watching for further growth indicators.
Kinetic Development Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Kinetic Development Group is a company focused on various business sectors, with a market capitalization of approximately CN¥1.27 billion.
Operations: The company's gross profit margin saw a notable increase from 9.05% in the third quarter of 2013 to approximately 59.07% by the end of the second quarter of 2024, reflecting significant efficiency improvements in managing cost of goods sold relative to revenue, which escalated from CN¥102.90 million to CN¥4745.07 million over the same period.