Insider Buying In Hong Kong Undervalued Small Caps To Watch

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As global markets experience varied economic shifts, with the Hang Seng Index recently declining by 6.53%, investors are increasingly focused on small-cap stocks in Hong Kong that may offer unique opportunities amid broader market volatility. In this environment, identifying companies with strong fundamentals and potential insider confidence can be particularly compelling for those looking to navigate the complexities of current market conditions.

Top 5 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Edianyun

NA

0.6x

43.44%

★★★★★☆

Vesync

7.2x

1.1x

-3.22%

★★★★☆☆

Lion Rock Group

5.4x

0.4x

49.96%

★★★★☆☆

Ferretti

10.9x

0.7x

46.95%

★★★★☆☆

Gemdale Properties and Investment

NA

0.2x

44.12%

★★★★☆☆

China Lesso Group Holdings

5.9x

0.4x

-519.95%

★★★☆☆☆

Skyworth Group

5.7x

0.1x

-301.94%

★★★☆☆☆

Lee & Man Paper Manufacturing

7.3x

0.4x

-48.66%

★★★☆☆☆

Emperor International Holdings

NA

1.0x

20.30%

★★★☆☆☆

Click here to see the full list of 9 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

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$2.5 billion.

Operations: The company generates revenue primarily from its Appliance & Tool segment, with recent figures reaching $604.75 million. Over the analyzed period, the gross profit margin has shown an upward trend, reaching 48.46% by mid-2024. Operating expenses are notable, particularly in sales and marketing and general administrative areas.

PE: 7.2x

Vesync, a Hong Kong-based company, has recently been added to the S&P Global BMI Index, signaling potential recognition in broader markets. Their sales for the first half of 2024 reached US$296 million, up from US$277 million last year, with net income climbing to US$45 million. Insider confidence is evident as Zhaojun Chen acquired 200,000 shares valued at HK$829k in early October. Despite relying on higher-risk external borrowing for funding, Vesync's operational efficiency improvements and cost reductions have bolstered profitability.

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 is engaged in property development, investment, and management, with a focus on residential and commercial real estate projects, and has a market capitalization of approximately HK$6.66 billion.