3 Undiscovered Gems In Hong Kong With Promising Potential

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As Hong Kong's Hang Seng Index experiences a significant rally, buoyed by China's recent stimulus measures, investors are eyeing small-cap stocks for potential opportunities amidst the broader market optimism. In this environment, identifying stocks with solid fundamentals and growth potential becomes crucial for capitalizing on the positive sentiment sweeping through the region.

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%

★★★★★★

Uju Holding

21.23%

-4.96%

-15.33%

★★★★★★

ManpowerGroup Greater China

NA

14.56%

1.58%

★★★★★★

Changjiu Holdings

NA

11.84%

2.46%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Xin Point Holdings

1.77%

10.88%

22.83%

★★★★★☆

Carote

2.36%

85.09%

92.12%

★★★★★☆

Lee's Pharmaceutical Holdings

14.22%

-1.39%

-14.93%

★★★★★☆

Time Interconnect Technology

151.14%

24.74%

19.78%

★★★★☆☆

Click here to see the full list of 168 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Poly Property Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Poly Property Group Co., Limited is an investment holding company involved in property investment, development, and management across Hong Kong, the People's Republic of China, and internationally, with a market capitalization of HK$7.60 billion.

Operations: The primary revenue stream for Poly Property Group comes from its property development business, generating CN¥35.59 billion. The company also earns revenue from property investment and management at CN¥1.87 billion and hotel operations at CN¥377.21 million.

Poly Property Group, a smaller player in the real estate sector, recently reported a significant earnings growth of 531% over the past year. However, their net debt to equity ratio remains high at 91.1%, raising some concerns about financial leverage. Despite this, they are trading at an attractive valuation compared to industry peers and have generated positive free cash flow lately. Recent unaudited sales figures show contracted sales of RMB 36.8 billion by August 2024, with an average selling price of RMB 25,628 per sq.m., indicating robust market activity despite broader industry challenges.

SEHK:119 Debt to Equity as at Oct 2024
SEHK:119 Debt to Equity as at Oct 2024

Carote

Simply Wall St Value Rating: ★★★★★☆

Overview: Carote Ltd is an investment holding company that offers kitchenware products to brand-owners and retailers under the CAROTE brand, with a market cap of HK$4.82 billion.