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As global markets grapple with economic uncertainties, the Hong Kong market has seen its share of volatility, with the Hang Seng Index recently declining by 3.03%. Amid this backdrop, small-cap stocks often present unique opportunities for investors willing to navigate their inherent risks. In such a fluctuating environment, identifying undervalued small-cap stocks with insider action can be particularly compelling.
Top 10 Undervalued Small Caps With Insider Buying In Hong Kong
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Shenzhen International Holdings | 5.9x | 0.7x | 23.93% | ★★★★★★ |
| Shanghai Chicmax Cosmetic | 17.4x | 2.2x | 0.24% | ★★★★★☆ |
| IGG | 5.2x | 0.7x | 12.93% | ★★★★★☆ |
| Lion Rock Group | 5.7x | 0.4x | 48.11% | ★★★★☆☆ |
| K. Wah International Holdings | 11.6x | 1.3x | 30.33% | ★★★★☆☆ |
| Giordano International | 9.2x | 0.7x | 26.99% | ★★★☆☆☆ |
| Skyworth Group | 5.0x | 0.1x | -154.72% | ★★★☆☆☆ |
| Lee & Man Paper Manufacturing | 6.1x | 0.4x | -24.08% | ★★★☆☆☆ |
| CN Logistics International Holdings | 20.1x | 0.5x | 23.23% | ★★★☆☆☆ |
| Comba Telecom Systems Holdings | NA | 0.6x | 36.79% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
K. Wah International Holdings
Simply Wall St Value Rating: ★★★★☆☆
Overview: K. Wah International Holdings focuses on property development and investment in Hong Kong and Mainland China, with a market cap of approximately HK$9.25 billion.
Operations: The company generates revenue primarily from property development in Mainland China and Hong Kong, along with property investment. For the period ending September 30, 2023, it reported a gross profit margin of 32.25%.
PE: 11.6x
K. Wah International Holdings, a small cap in Hong Kong, has seen insider confidence with share purchases over the past year. Recently, they reported a significant drop in sales to HK$1.21 billion for the first half of 2024 from HK$3.10 billion last year, and net income fell to HK$153.79 million from HK$481.91 million. Despite this, earnings are forecasted to grow by 43% annually, suggesting potential for future value growth amidst current undervaluation concerns.
Comba Telecom Systems Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Comba Telecom Systems Holdings specializes in providing wireless telecommunications network system equipment and services, as well as operator telecommunication services, with a market cap of HK$1.78 billion.
Operations: The company primarily generates revenue from Wireless Telecommunications Network System Equipment and Services, with a smaller contribution from Operator Telecommunication Services. For the period ending 2023-06-30, it reported a gross profit margin of 28.63% on revenue of HK$6.55 billion.