Discover Hong Kong's Top 3 Undervalued Small Caps With Insider Buying In September 2024
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As global markets react to China's robust stimulus measures, the Hong Kong market has seen a significant uptick, with the Hang Seng Index gaining 13% in recent weeks. This positive sentiment provides an opportune backdrop for investors looking at small-cap stocks that may be undervalued yet show promising insider activity. In such a dynamic environment, identifying good stocks often involves looking for companies with strong fundamentals and recent insider buying, which can signal confidence from those who know the business best.
Top 10 Undervalued Small Caps With Insider Buying In Hong Kong
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Edianyun | NA | 0.6x | 43.40% | ★★★★★☆ |
| Ferretti | 10.6x | 0.7x | 48.39% | ★★★★☆☆ |
| Gemdale Properties and Investment | NA | 0.2x | 46.63% | ★★★★☆☆ |
| Meilleure Health International Industry Group | 26.0x | 9.6x | 20.94% | ★★★☆☆☆ |
| China Lesso Group Holdings | 5.4x | 0.4x | -464.44% | ★★★☆☆☆ |
| Skyworth Group | 5.8x | 0.1x | -309.33% | ★★★☆☆☆ |
| Jinke Smart Services Group | NA | 0.9x | 41.12% | ★★★☆☆☆ |
| CN Logistics International Holdings | 19.2x | 0.4x | 25.34% | ★★★☆☆☆ |
| Ming Yuan Cloud Group Holdings | NA | 2.7x | 44.75% | ★★★☆☆☆ |
| Emperor International Holdings | NA | 0.8x | 32.06% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
China Lesso Group Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: China Lesso Group Holdings is a leading manufacturer and distributor of plastic and rubber products with operations primarily in the construction materials sector, boasting a market cap of CN￥37.50 billion.
Operations: The company generates revenue primarily from its Plastics & Rubber segment, with recent quarterly revenue reaching CN￥29.13 billion. The net income margin has shown variations, most recently at 6.58%.
PE: 5.4x
China Lesso Group Holdings, a Hong Kong small cap, recently reported a decline in sales and net income for the half year ending June 30, 2024. Sales fell to CNY 13.56 billion from CNY 15.30 billion last year, while net income dropped to CNY 1.04 billion from CNY 1.49 billion. Despite these challenges, insider confidence remains strong with Luen Hei Wong purchasing four million shares worth approximately US$10 million recently. This suggests potential for future growth despite current financial hurdles and high debt levels reliant on external borrowing sources.
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Take a closer look at China Lesso Group Holdings' potential here in our valuation report.
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Learn about China Lesso Group Holdings' historical performance.
Gemdale Properties and Investment
Simply Wall St Value Rating: ★★★★☆☆
Overview: Gemdale Properties and Investment focuses on property development, investment, and management with a market cap of approximately CN￥5.24 billion.