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Undiscovered Gems In Hong Kong To Watch August 2024

In This Article:

As global markets react to anticipated interest rate cuts by the Federal Reserve, small-cap stocks have been outperforming their larger counterparts, with indices like the S&P 600 showing notable gains. Amid this favorable environment for smaller companies, Hong Kong's market presents intriguing opportunities for investors seeking undiscovered gems. In this context, identifying promising stocks involves looking at companies with solid fundamentals and growth potential that may benefit from current economic conditions and broader market sentiment.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

S.A.S. Dragon Holdings

60.96%

4.62%

10.02%

★★★★★★

COSCO SHIPPING International (Hong Kong)

NA

-3.84%

16.33%

★★★★★★

PW Medtech Group

NA

17.93%

-2.70%

★★★★★★

Changjiu Holdings

NA

11.84%

2.50%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

JiaXing Gas Group

17.72%

26.04%

22.07%

★★★★★☆

Xin Point Holdings

1.77%

10.88%

22.83%

★★★★★☆

Chongqing Machinery & Electric

28.07%

8.82%

11.12%

★★★★★☆

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.

We're going to check out a few of the best picks from our screener tool.

Xin Point Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: Xin Point Holdings Limited, an investment holding company, manufactures and sells automotive and electronic components in China, North America, Europe, and internationally with a market cap of HK$3.39 billion.

Operations: Xin Point Holdings generates revenue primarily from the manufacture and sale of automotive and electronic components, amounting to CN¥3.23 billion. The company operates internationally, including markets in China, North America, and Europe.

Xin Point Holdings, a small cap in the auto components sector, recently reported half-year sales of CNY 1.65 billion and net income of CNY 322.16 million, showing solid growth from last year’s figures. The company is trading at 75% below its estimated fair value and has been growing earnings faster than the industry at 27%. With a debt-to-equity ratio increase from 0.3 to 1.8 over five years, Xin Point still maintains high-quality earnings and positive free cash flow.

SEHK:1571 Earnings and Revenue Growth as at Aug 2024
SEHK:1571 Earnings and Revenue Growth as at Aug 2024

Wanguo International Mining Group

Simply Wall St Value Rating: ★★★★★☆