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As global markets experience heightened volatility and economic indicators offer mixed signals, the Hong Kong market stands resilient with its unique opportunities. In this dynamic environment, identifying promising small-cap stocks requires a keen eye for companies with strong fundamentals and growth potential.
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% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| JiaXing Gas Group | 17.72% | 26.04% | 22.07% | ★★★★★☆ |
| Hung Hing Printing Group | 3.97% | -2.51% | 33.57% | ★★★★★☆ |
| Changjiu Holdings | 14.09% | 12.87% | -4.74% | ★★★★★☆ |
| Mulsanne Group Holding | 186.88% | -12.02% | -43.54% | ★★★★☆☆ |
| Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
| Time Interconnect Technology | 212.50% | 27.21% | 15.01% | ★★★★☆☆ |
Let's explore several standout options from the results in the screener.
Kinetic Development Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Kinetic Development Group Limited, an investment holding company with a market cap of HK$9.86 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 reported a gross profit margin of 34.5% for the latest fiscal year, indicating its profitability from core operations.
Kinetic Development Group has shown a notable improvement in its financial health over the past five years, with its debt to equity ratio dropping from 26.6% to 17.6%. Despite facing a tough year with earnings growth at -22%, the company's interest payments are well covered by EBIT, boasting a coverage ratio of 55.7x. Recently trading at 22.8% below estimated fair value, Kinetic appears undervalued and is considering a special dividend at an upcoming board meeting on August 12, 2024.
Wasion Holdings
Simply Wall St Value Rating: ★★★★★☆
Overview: Wasion Holdings Limited is an investment holding company that focuses on the research, development, production, and sale of energy metering and energy efficiency management solutions for various regions including China, Africa, the United States, Europe, and Asia; it has a market cap of HK$6.52 billion.