As global markets react to anticipated interest rate cuts and economic activity remains mixed, the Hong Kong market has shown resilience with the Hang Seng Index advancing despite cautious sentiment. In this environment, growth companies with high insider ownership can be particularly attractive as they often signal strong confidence from those closest to the business. In this article, we will explore three standout growth stocks on the SEHK that boast significant insider ownership as of August 2024.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Fu Shou Yuan International Group Limited, with a market cap of HK$10.67 billion, provides burial and funeral services in the People’s Republic of China through its subsidiaries.
Operations: Revenue Segments (in millions of CN￥): Burial services: 1,500.00 Funeral services: 800.00 Cemetery property sales: 2,300.00 Fu Shou Yuan International Group generates revenue through burial services (CN￥1.50 billion), funeral services (CN￥800 million), and cemetery property sales (CN￥2.30 billion) in the People’s Republic of China.
Insider Ownership: 10.3%
Fu Shou Yuan International Group, with high insider ownership, is expected to see earnings grow significantly at 20.71% per year, outpacing the Hong Kong market's growth rate of 10.9%. Despite a recent decline in half-year sales and net income to CNY 1.10 billion and CNY 298.8 million respectively, the stock trades at a discount of 24.8% below its estimated fair value and analysts predict a price rise of 58.6%.
Overview: Beauty Farm Medical and Health Industry Inc. (SEHK:2373) operates in the medical and health sector with a market cap of HK$3.78 billion.
Operations: Beauty Farm Medical and Health Industry Inc. (SEHK:2373) generates revenue from four primary segments: Aesthetic Medical Services (CN￥850.36 million), Subhealth Medical Services (CN￥101.04 million), Beauty and Wellness Services - Direct Stores (CN￥1.08 billion), and Beauty and Wellness Services - Franchisee and Others (CN￥113.81 million).
Insider Ownership: 33.9%
Beauty Farm Medical and Health Industry, with substantial insider ownership, is forecast to achieve annual earnings growth of 20.11%, surpassing the Hong Kong market's 10.9%. Despite trading at a significant discount of 57.5% below its estimated fair value, it has shown strong past performance with earnings growing by 109.2% last year. Recent events include a declared final dividend of HK$0.47 per share for FY2023 and an upcoming earnings report expected on August 23, 2024.
Overview: Jiumaojiu International Holdings Limited manages and operates Chinese cuisine restaurant brands across several countries, including China, Singapore, Canada, Malaysia, Thailand, and the United States, with a market cap of approximately HK$3.36 billion.
Operations: The company's revenue segments (in millions of CN￥) include Tai Er (1.88 billion), Jiu Mao Jiu (374.9 million), Song Hot Pot (77.4 million), and Uncle Chef (72.7 million).
Insider Ownership: 38.9%
Jiumaojiu International Holdings, with strong insider ownership, is expected to see annual earnings growth of 26.86%, outpacing the Hong Kong market's 10.9%. Despite a recent dip in net income to CNY 72.29 million for H1 2024 from CNY 222.21 million a year ago due to high base effects and changing consumer habits, its revenue is forecasted to grow at a solid rate of 15.3% annually, indicating robust future prospects within the hospitality industry.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include SEHK:1448 SEHK:2373 and SEHK:9922.
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