As global markets navigate mixed trading and economic data, the Hong Kong market has shown resilience with the Hang Seng Index gaining 2.14%. Amidst this backdrop, identifying growth companies with high insider ownership can offer unique insights and potential stability for investors. In today's article, we will explore three top growth companies listed on the SEHK that boast significant insider ownership.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: AAC Technologies Holdings Inc. is an investment holding company offering solutions for smart devices across various regions including Mainland China, Hong Kong, Taiwan, other Asian countries, the United States, and Europe with a market cap of HK$39.73 billion.
Operations: The company's revenue segments include CN¥4.07 billion from Optics Products, CN¥7.64 billion from Acoustics Products, CN¥0.92 billion from Sensor and Semiconductor Products, and CN¥8.28 billion from Electromagnetic Drives and Precision Mechanics.
Insider Ownership: 36.7%
Revenue Growth Forecast: 12% p.a.
AAC Technologies Holdings reported strong earnings for H1 2024, with sales reaching CNY 11.25 billion and net income at CNY 537.03 million, showing substantial growth from the previous year. The company is forecasted to achieve significant annual profit growth of over 20% and revenue growth of around 12%, outpacing the Hong Kong market averages. Despite a lower return on equity forecast (9.6%), AAC remains attractive due to its high insider ownership and trading below fair value estimates by 7.4%.
Overview: Fenbi Ltd. (SEHK:2469) is an investment holding company offering non-formal vocational education and training services in the People’s Republic of China, with a market cap of HK$5.85 billion.
Operations: The company's revenue segments consist of CN¥2.47 billion from tutoring services and CN¥648.46 million from book sales.
Insider Ownership: 31.2%
Revenue Growth Forecast: 14.0% p.a.
Fenbi Ltd. reported H1 2024 earnings with net income rising sharply to CNY 277.74 million from CNY 81.48 million a year ago, despite a slight dip in sales to CNY 1,630.47 million. The company forecasts significant annual profit growth of over 25%, outpacing the Hong Kong market average, and has seen substantial insider buying recently. Fenbi's earnings per share also improved markedly, reflecting robust financial health and strong insider confidence in its growth trajectory.
Overview: Meituan is a technology retail company operating in the People's Republic of China with a market cap of HK$718.84 billion.
Operations: The company's revenue segments include New Initiatives generating CN¥77.56 billion and Core Local Commerce contributing CN¥228.13 billion.
Insider Ownership: 11.6%
Revenue Growth Forecast: 12.9% p.a.
Meituan's H1 2024 earnings showed strong growth, with net income doubling to CNY 16.72 billion on sales of CNY 155.53 billion. Analysts expect annual profit growth of 25.8%, outpacing the Hong Kong market, and revenue growth at 12.9% per year. The company announced a $1 billion share buyback program, signaling confidence in its valuation despite low recent insider buying activity and modest Return on Equity forecasts (18.4%).
Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
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:2018 SEHK:2469 and SEHK:3690.
