The Hong Kong market has shown resilience amid global volatility, with the Hang Seng Index gaining 0.85% recently despite broader concerns about economic growth. In this environment, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence from those closest to the business. Investors may find that such stocks not only have the potential for significant earnings growth but also benefit from strong internal support and alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Kuaishou Technology, an investment holding company, offers live streaming, online marketing, and other services in the People’s Republic of China with a market cap of HK$193.29 billion.
Operations: The company's revenue segments are Domestic: CN¥114.72 billion and Overseas: CN¥2.94 billion.
Insider Ownership: 19.2%
Earnings Growth Forecast: 22.4% p.a.
Kuaishou Technology, with substantial insider ownership, is experiencing significant growth. Analysts forecast its earnings to grow 22.41% annually over the next three years, outpacing the Hong Kong market average. The company recently became profitable and trades at 53.9% below its estimated fair value. Kuaishou's recent upgrades to its Kling AI video generation model and a new subscription program have bolstered user engagement, potentially enhancing future revenue streams.
Overview: J&T Global Express Limited, an investment holding company with a market cap of HK$60.28 billion, provides express delivery services.
Operations: The company's revenue segments include Transportation - Air Freight, generating $8.85 billion.
Insider Ownership: 20.2%
Earnings Growth Forecast: 106% p.a.
J&T Global Express has substantial insider ownership and is forecast to become profitable within the next three years, with earnings expected to grow 106.04% annually. Revenue grew by 21.8% over the past year and is projected to increase at 16.8% per year, outpacing the Hong Kong market average of 7.4%. The company was recently added to the FTSE All-World Index, enhancing its visibility among global investors.
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of HK$178.76 billion.
Operations: Revenue segments for Techtronic Industries are comprised of $13.23 billion from Power Equipment and $965.09 million from Floorcare & Cleaning products.
Insider Ownership: 25.4%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries demonstrates strong insider ownership, with recent substantial share purchases by insiders. The company reported half-year sales of US$7.31 billion and net income of US$550.37 million, reflecting solid growth from the previous year. Newly appointed CEO Steven Richman brings extensive industry experience, potentially bolstering future performance. Analysts forecast revenue and earnings growth to outpace the Hong Kong market, with expected annual profit growth at 15.3%. Additionally, a recent dividend increase underscores financial confidence amidst ongoing expansion efforts.
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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:1024 SEHK:1519 and SEHK:669.
