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As global markets experience fluctuations, with the Hang Seng Index recently seeing a notable decline, investors are increasingly turning their attention to small-cap stocks in Hong Kong for potential opportunities amidst broader market volatility. In this dynamic environment, identifying promising small-cap companies requires careful consideration of their growth potential and resilience against economic shifts.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| PW Medtech Group | 0.06% | 22.33% | -17.56% | ★★★★★★ |
| C&D Property Management Group | 1.32% | 37.15% | 41.55% | ★★★★★★ |
| ManpowerGroup Greater China | NA | 14.56% | 1.58% | ★★★★★★ |
| Sundart Holdings | 0.92% | -2.32% | -3.94% | ★★★★★★ |
| China Leon Inspection Holding | 8.55% | 21.36% | 22.77% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| Xin Point Holdings | 1.77% | 10.88% | 22.83% | ★★★★★☆ |
| S.A.S. Dragon Holdings | 60.96% | 4.62% | 10.02% | ★★★★★☆ |
| Lvji Technology Holdings | 3.06% | 4.56% | -1.87% | ★★★★★☆ |
| Chongqing Machinery & Electric | 27.77% | 8.82% | 11.12% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Kinetic Development Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Kinetic Development Group Limited is an investment holding company involved in the extraction and sale of coal products in the People’s Republic of China, with a market capitalization of HK$13.66 billion.
Operations: Kinetic Development generates its revenue primarily from the extraction and sale of coal products in China. The company has a market capitalization of HK$13.66 billion, reflecting its significant presence in the industry.
Kinetic Development Group, a relatively small player in its sector, has shown impressive growth with earnings rising by 39% over the past year, outpacing the broader oil and gas industry. The company reported sales of CNY 2.53 billion for the first half of 2024, significantly higher than last year's CNY 1.49 billion. Its debt to equity ratio improved from 28% to just under 13% over five years, indicating effective financial management and positioning it as a potential value opportunity trading well below estimated fair value.
Time Interconnect Technology
Simply Wall St Value Rating: ★★★★☆☆
Overview: Time Interconnect Technology Limited is an investment holding company that manufactures and sells cable assembly and networking cable products across various international markets, with a market cap of approximately HK$9.93 billion.