As global markets exhibit mixed signals with ongoing adjustments in major indices, the Hong Kong market remains a focal point for investors seeking growth opportunities. In this context, identifying SEHK-listed growth companies with high insider ownership and robust earnings growth becomes particularly compelling, offering potential resilience and alignment of interests between shareholders and management.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Meitu, Inc. is an investment holding company that specializes in developing products for image, video, and design enhancement to promote digitalization in the beauty industry, operating both in the People’s Republic of China and internationally, with a market cap of HK$11.20 billion.
Operations: The company generates revenue primarily through its Internet Business segment, which amounted to CN¥2.70 billion.
Insider Ownership: 36.6%
Earnings Growth Forecast: 28.6% p.a.
Meitu, Inc. has shown robust growth with earnings up by 301.8% last year and expected to grow at 28.58% annually. Despite trading at 76.8% below its estimated fair value, its revenue growth forecast of 17.7% per year lags behind the significant benchmark of 20%. Insider activity is mixed with more buying than selling in recent months but no substantial purchases in the last quarter, reflecting cautious optimism among those closest to company operations. Recent corporate governance changes include board reshuffles and dividend declarations, enhancing shareholder engagement and potentially stabilizing governance structures.
Overview: DPC Dash Ltd operates a chain of fast-food restaurants in the People’s Republic of China and has a market capitalization of approximately HK$9.05 billion.
Operations: The company generates CN¥3.05 billion in revenue from its fast-food restaurant operations across China.
Insider Ownership: 38.2%
Earnings Growth Forecast: 90.5% p.a.
DPC Dash Ltd., a growth-oriented firm in Hong Kong, recently celebrated the opening of its 900th store, underscoring a rapid expansion strategy with plans to open 240 new stores this year. Despite trading at 62.4% below its fair value, DPC Dash is expected to become profitable within three years with earnings forecasted to grow by 90.46% annually and revenue increasing at 24.8% per year—substantially outpacing the market average of 7.4%. Insider buying activity has been positive, though not in large volumes, indicating cautious yet optimistic insider sentiment towards the company's growth trajectory.
Overview: Xiamen Yan Palace Bird's Nest Industry Co., Ltd. focuses on the research, development, production, and marketing of edible bird’s nest products in China, with a market capitalization of HK$6.68 billion.
Operations: The company generates revenue through various segments, including sales to online distributors (CN¥16.75 million), offline distributors (CN¥509.04 million), direct sales to online customers (CN¥824.40 million), offline customers (CN¥351.17 million), and e-commerce platforms (CN¥262.89 million).
Insider Ownership: 26.7%
Earnings Growth Forecast: 14.8% p.a.
Xiamen Yan Palace Bird's Nest Industry, despite a projected net profit decline of 40% to 50% for the first half of 2024, continues to see revenue growth, expected between RMB 1.05 billion and RMB 1.09 billion—an increase of about 10% to 15%. This growth is supported by robust online sales despite a tough operating environment. The company’s earnings are set to outpace the Hong Kong market with an annual forecast growth rate of approximately 14.8%, while its revenue growth also surpasses local market averages at about 12.5% annually. However, there has been no significant insider buying or selling in the past three months, and recent amendments to company bylaws could indicate strategic shifts or stabilization efforts.
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:1357 SEHK:1405 and SEHK:1497.
