As global markets navigate the complexities of geopolitical tensions and economic shifts, Hong Kong's Hang Seng Index has shown resilience, climbing 10.2% in a holiday-shortened week. This performance highlights investor optimism amid Beijing's supportive measures, setting a promising backdrop for growth companies with high insider ownership. In such a market environment, stocks that combine robust growth potential with significant insider ownership may offer unique insights into management confidence and long-term value creation strategies.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Name
Insider Ownership
Earnings Growth
Laopu Gold (SEHK:6181)
36.4%
32.7%
Akeso (SEHK:9926)
20.5%
52.6%
Fenbi (SEHK:2469)
33.1%
22.4%
Xiamen Yan Palace Bird's Nest Industry (SEHK:1497)
Overview: Beauty Farm Medical and Health Industry Inc. (SEHK:2373) operates in the healthcare sector, focusing on medical and health services, with a market cap of approximately HK$4.08 billion.
Operations: The company's revenue is derived from four main segments: Aesthetic Medical Services (CN¥851.81 million), Subhealth Medical Services (CN¥125.69 million), Beauty and Wellness Services - Direct Stores (CN¥1.14 billion), and Beauty and Wellness Services - Franchisee and Others (CN¥131.48 million).
Insider Ownership: 33.9%
Earnings Growth Forecast: 20.2% p.a.
Beauty Farm Medical and Health Industry is trading significantly below its estimated fair value, suggesting potential undervaluation. The company reported a modest increase in earnings for the first half of 2024, with sales reaching CNY 1.14 billion. Earnings are projected to grow significantly at over 20% annually, outpacing the Hong Kong market average. Recent board changes include appointing Mr. Hu Tenghe as a non-executive director, bringing extensive capital markets experience to the team.
Overview: Lianlian DigiTech Co., Ltd., along with its subsidiaries, offers digital payment and value-added services to small and midsized merchants and enterprises in China, with a market cap of HK$10.36 billion.
Operations: The company's revenue segments include CN¥722.95 million from Global Payment, CN¥309.92 million from Domestic Payment, and CN¥153.01 million from Value-Added Services.
Insider Ownership: 19.7%
Earnings Growth Forecast: 92.3% p.a.
Lianlian DigiTech's recent earnings report shows sales growth to CNY 617.39 million for H1 2024, up from CNY 440.59 million a year ago, despite a net loss of CNY 351.29 million. Revenue is forecasted to grow at a robust pace of over 20% annually, surpassing the Hong Kong market average. The company is expected to become profitable within three years, signaling above-average market growth potential and aligning with its high insider ownership structure.
Overview: Laopu Gold Co., Ltd. designs, manufactures, and sells jewelry products in Mainland China, Hong Kong, and Macau with a market cap of HK$28.66 billion.
Operations: The company's revenue primarily comes from its Jewelry & Watches segment, amounting to CN¥5.28 billion.
Insider Ownership: 36.4%
Earnings Growth Forecast: 32.7% p.a.
Laopu Gold's recent earnings report highlights substantial growth, with H1 2024 sales reaching CNY 3.52 billion, up from CNY 1.42 billion the previous year. Net income increased significantly to CNY 587.81 million from CNY 196.75 million a year ago, driven by high-quality earnings and robust revenue growth forecasts of nearly 30% annually over the next three years—outpacing the Hong Kong market average—while maintaining a strong insider ownership structure.
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:2373 SEHK:2598 and SEHK:6181.
