Undiscovered Gems in Hong Kong for August 2024

In This Article:

As global markets experience heightened volatility and economic indicators show mixed signals, the Hong Kong market remains a focal point for investors seeking opportunities in small-cap stocks. Despite the recent pullback in indices like the Russell 2000, discerning investors understand that a good stock often combines strong fundamentals with resilience to broader market fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

E-Commodities Holdings

23.22%

6.87%

31.81%

★★★★★★

S.A.S. Dragon Holdings

37.35%

4.13%

12.06%

★★★★★★

COSCO SHIPPING International (Hong Kong)

NA

-12.97%

12.59%

★★★★★★

PW Medtech Group

NA

17.93%

-2.70%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

JiaXing Gas Group

17.72%

26.04%

22.07%

★★★★★☆

Xin Point Holdings

2.03%

9.80%

15.04%

★★★★★☆

Hung Hing Printing Group

3.97%

-2.51%

33.57%

★★★★★☆

Changjiu Holdings

14.09%

12.87%

-4.74%

★★★★★☆

Time Interconnect Technology

212.50%

27.21%

15.01%

★★★★☆☆

Click here to see the full list of 174 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Kinetic Development Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Kinetic Development Group Limited (SEHK:1277) is an investment holding company that focuses on the extraction and sale of coal products in the People’s Republic of China, with a market cap of HK$9.02 billion.

Operations: Kinetic Development Group Limited derives its revenue primarily from the extraction and sale of coal products in the People’s Republic of China. The company has a market cap of HK$9.02 billion.

Kinetic Development Group, a small-cap player in Hong Kong's oil and gas sector, has seen its net debt to equity ratio improve from 26.6% to 17.6% over the past five years. Despite negative earnings growth of -22% last year, it trades at 29.3% below fair value estimates and boasts high-quality earnings. Additionally, interest payments are well covered by EBIT with a coverage ratio of 55.7x, indicating strong financial health amidst challenging industry conditions.

SEHK:1277 Earnings and Revenue Growth as at Aug 2024
SEHK:1277 Earnings and Revenue Growth as at Aug 2024

Central China Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: Central China Securities Co., Ltd. is a securities company involved in brokerage, credit, futures, proprietary trading, investment banking and management with a market cap of HK$14.66 billion.