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Undiscovered Gems In Hong Kong And 2 Other Promising Small Caps

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In recent weeks, the Hong Kong market has mirrored global trends, with the Hang Seng Index experiencing a notable decline amid weak corporate earnings and economic data. Despite this backdrop, investors are increasingly looking towards small-cap stocks for potential opportunities as broader market sentiment remains cautious. Identifying promising stocks in such an environment requires a focus on companies with strong fundamentals, innovative business models, and resilience to economic fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Lion Rock Group

16.91%

14.33%

10.15%

★★★★★★

C&D Property Management Group

1.32%

37.15%

41.55%

★★★★★★

COSCO SHIPPING International (Hong Kong)

NA

-3.84%

16.33%

★★★★★★

ManpowerGroup Greater China

NA

14.56%

1.58%

★★★★★★

Sundart Holdings

0.92%

-2.32%

-3.94%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Xin Point Holdings

1.77%

10.88%

22.83%

★★★★★☆

HBM Holdings

52.89%

66.59%

31.70%

★★★★★☆

Pizu Group Holdings

48.34%

-4.53%

-19.78%

★★★★☆☆

Billion Industrial Holdings

3.63%

18.00%

-11.38%

★★★★☆☆

Click here to see the full list of 169 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Kinetic Development Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Kinetic Development Group Limited, an investment holding company with a market cap of HK$10.54 billion, engages in the extraction and sale of coal products in the People’s Republic of China.

Operations: Kinetic Development Group generates revenue primarily through the extraction and sale of coal products in China. The company has a market cap of HK$10.54 billion.

Kinetic Development Group has demonstrated impressive growth, with earnings rising 39.2% over the past year, significantly outpacing the Oil and Gas industry average of 4.6%. The company reported half-year sales of CNY 2.53 billion and net income of CNY 1.10 billion, both substantial increases from a year ago. Trading at 67% below its estimated fair value, Kinetic's debt to equity ratio has improved from 28.4% to a satisfactory 12.5% over five years, reflecting prudent financial management.

SEHK:1277 Debt to Equity as at Sep 2024
SEHK:1277 Debt to Equity as at Sep 2024

Wanguo International Mining Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Wanguo International Mining Group Limited is an investment holding company involved in mining, ore processing, and the sale of concentrate products in the People’s Republic of China and Solomon Islands with a market cap of HK$7.28 billion.