As global markets experience mixed performances and economic data presents a varied picture, the Hong Kong market has seen its share of fluctuations. Despite these challenges, certain growth companies with high insider ownership stand out as potentially resilient investments. In this environment, stocks with substantial insider ownership often signal strong confidence from those who know the company best. This article will explore three such companies listed on the SEHK that are noteworthy for their growth potential and significant insider stakes.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: J&T Global Express Limited (SEHK:1519) is an investment holding company that provides express delivery services and has a market cap of HK$54.19 billion.
Operations: The company's revenue segments include Transportation - Air Freight, which generated $8.85 billion.
Insider Ownership: 20.2%
J&T Global Express, recently added to the FTSE All-World Index, shows promising growth with revenue forecasted to increase by 15.9% per year, outpacing the Hong Kong market. Despite a low projected Return on Equity of 17.9%, its earnings are expected to grow by 102.99% annually and become profitable within three years, surpassing average market growth. Insider ownership remains strong with no substantial insider trading in recent months.
Overview: MGM China Holdings Limited is an investment holding company involved in the development, ownership, and operation of gaming and lodging resorts in the Greater China region, with a market cap of HK$43.32 billion.
Operations: The company's revenue primarily comes from its casinos and resorts, generating HK$24.68 billion.
Insider Ownership: 10%
MGM China Holdings, with substantial insider ownership, is poised for growth as its earnings are projected to increase by 17.05% annually, outpacing the Hong Kong market's average. Recent debt financing of US$500 million aims to strengthen its financial position by repaying outstanding credit. Additionally, a significant share buyback program could enhance net asset value and earnings per share. However, interest payments on new debt may strain earnings coverage in the short term.
Overview: Meituan, with a market cap of HK$664.72 billion, operates as a technology retail company in the People’s Republic of China.
Operations: The company's revenue segments are as follows: Food delivery (CN¥96.28 billion), In-store, hotel, and travel (CN¥32.48 billion), and New initiatives and others (CN¥57.18 billion).
Insider Ownership: 11.6%
Meituan, with significant insider ownership, is expected to see annual earnings growth of 30.81%, outpacing the Hong Kong market's 11.4%. Recent events include a share repurchase program worth $2 billion and amendments to company bylaws. Q1 2024 results showed strong financial performance with sales at CNY 73.28 billion and net income at CNY 5.37 billion, reflecting substantial year-over-year growth despite no substantial insider buying in the past three months.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include SEHK:1519 SEHK:2282 and SEHK:3690.
