The Hong Kong market has shown resilience amid global economic fluctuations, with the Hang Seng Index gaining 5.12% recently. As investors navigate these uncertain times, growth companies with high insider ownership can offer unique investment opportunities due to their potential for strong performance and alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Beauty Farm Medical and Health Industry Inc. (SEHK:2373) operates in the medical and health industry with a market cap of HK$3.83 billion.
Operations: The company's revenue segments include 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%
Beauty Farm Medical and Health Industry's earnings are forecast to grow 20.4% annually, outpacing the Hong Kong market's growth rate. Despite trading at 66.1% below its estimated fair value, revenue is expected to grow slower than earnings at 18.8% per year. Recent results show modest growth with sales reaching CNY 1.14 billion for H1 2024, up from CNY 1.04 billion a year ago, and net income increasing slightly to CNY 115.42 million from CNY 111.83 million last year.
Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of HK$821.64 billion.
Operations: Revenue segments include CN¥228.13 billion from Core Local Commerce and CN¥77.56 billion from New Initiatives.
Insider Ownership: 11.6%
Meituan's earnings are forecast to grow 25.84% annually, significantly outpacing the Hong Kong market. Recent results show robust growth with H1 2024 sales at CNY 155.53 billion, up from CNY 126.58 billion a year ago, and net income doubling to CNY 16.72 billion. Despite substantial insider selling over the past three months, the company has been actively repurchasing shares worth HKD 7.17 billion in recent tranches, indicating strong confidence from management.
Overview: Jiumaojiu International Holdings Limited manages and operates Chinese cuisine restaurant brands across several countries including China, Singapore, Canada, Malaysia, Thailand, and the United States with a market cap of approximately HK$3.45 billion.
Operations: The company's revenue segments (in millions of CN¥) are Tai Er: ¥4.54 billion, Jiu Mao Jiu: ¥603.83 million, and Song Hot Pot: ¥885.66 million.
Insider Ownership: 39.3%
Jiumaojiu International Holdings shows mixed results with H1 2024 sales rising to CNY 3.06 billion from CNY 2.88 billion, but net income dropping significantly to CNY 72.29 million due to high base effects and shifting consumer habits. Despite this, earnings are forecasted to grow at a robust annual rate of over 21%, outpacing the Hong Kong market's average growth rate. The company trades at a substantial discount to its estimated fair value, suggesting potential upside for long-term investors despite recent profit declines.
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:3690 and SEHK:9922.
