In recent trading sessions, the Hong Kong market has mirrored global economic uncertainties, with the Hang Seng Index experiencing a notable decline amid concerns over U.S. interest rate policies and ongoing issues in China's property sector. In this environment, investors may find reassurance in growth companies with high insider ownership, as these firms often demonstrate alignment of interests between shareholders and management, potentially offering greater resilience amidst market volatility.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: iDreamSky Technology Holdings Limited is an investment holding company that operates a digital entertainment platform, publishing games through mobile apps and websites in the People’s Republic of China, with a market cap of approximately HK$4.93 billion.
Operations: The company's revenue from its digital entertainment platform, primarily through game and information services including SaaS and related services, totaled CN¥1.92 billion.
Insider Ownership: 20.1%
iDreamSky Technology Holdings, despite a challenging year with sales dropping to CNY 1.92 billion and a net loss of CNY 556.35 million, shows potential for recovery with strategic alliances like the recent partnership in Saudi Arabia aimed at expanding its gaming footprint. Insider activities reflect confidence with substantial buying over selling in the past three months. Analysts project robust revenue growth (27.8% per year) and expect the company to turn profitable within three years, highlighting its growth prospects amidst current undervaluation (trading 23.5% below fair value).
Overview: Dongyue Group Limited operates as an investment holding company that manufactures and distributes a range of products including polymers, organic silicone, and refrigerants, primarily in the People's Republic of China and internationally, with a market cap of approximately HK$16.998 billion.
Operations: Dongyue Group's revenue streams include CN¥4.55 billion from polymers, CN¥5.48 billion from refrigerants, CN¥4.86 billion from organic silicon, and CN¥1.21 billion from dichloromethane PVC and liquid alkali.
Insider Ownership: 15.4%
Dongyue Group's recent performance shows a sharp decline in net profit, dropping significantly from the previous year due to lower product prices and higher raw material costs. Despite this, revenue is expected to grow at 15.4% annually, outpacing the Hong Kong market average. Earnings are also projected to increase substantially by 35.73% yearly. However, insider trading activity has been quiet with no significant buying or selling reported in the past three months, and a recent dividend cut may concern investors about short-term financial health.
Overview: CanSino Biologics Inc. is a company based in the People's Republic of China that focuses on developing, manufacturing, and commercializing vaccines, with a market capitalization of approximately HK$9.22 billion.
Operations: The company generates revenue primarily through its research and development of vaccine products for human use, totaling CN¥370.81 million.
Insider Ownership: 27.9%
CanSino Biologics, a growth company with high insider ownership in Hong Kong, is poised for significant advancements despite recent setbacks. The firm reported a net loss increase in Q1 2024 but is actively expanding its vaccine portfolio, including gaining approvals for clinical trials of new vaccines. Expected to turn profitable within three years, CanSino's revenue is forecast to grow at 34.3% annually, outperforming the local market's 7.9%. However, its return on equity remains low at an anticipated 5.1% in three years.
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:1119 SEHK:189SEHK:6185.
