Undiscovered Gems In Hong Kong To Watch This October 2024
As global markets react to China's robust stimulus measures, the Hang Seng Index in Hong Kong has seen a significant uptick, reflecting renewed investor optimism. This positive sentiment presents an opportune moment to explore some lesser-known stocks that could benefit from these economic tailwinds. In this dynamic environment, identifying stocks with strong fundamentals and growth potential becomes crucial for investors looking to capitalize on market movements.
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% | ★★★★★★ |
Changjiu Holdings | NA | 11.84% | 2.46% | ★★★★★★ |
Sundart Holdings | 0.92% | -2.32% | -3.94% | ★★★★★★ |
China Leon Inspection Holding | 8.55% | 21.36% | 22.77% | ★★★★★★ |
Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
S.A.S. Dragon Holdings | 60.96% | 4.62% | 10.02% | ★★★★★☆ |
Lvji Technology Holdings | 3.06% | 4.56% | -1.87% | ★★★★★☆ |
Billion Industrial Holdings | 3.63% | 18.00% | -11.38% | ★★★★★☆ |
Time Interconnect Technology | 151.14% | 24.74% | 19.78% | ★★★★☆☆ |
Chongqing Machinery & Electric | 27.77% | 8.82% | 11.12% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
Poly Property Group
Simply Wall St Value Rating: ★★★★☆☆
Overview: Poly Property Group Co., Limited is an investment holding company that engages in property investment, development, and management in Hong Kong, the People’s Republic of China, and internationally, with a market cap of HK$6.80 billion.
Operations: Poly Property Group generates revenue primarily from its property development business (CN￥35.59 billion) and property investment and management (CN￥1.87 billion), with additional income from hotel operations (CN￥377.21 million).
Poly Property Group's earnings surged 531% last year, outpacing the real estate sector's -11%. However, its debt-to-equity ratio remains high at 91.1%, and operating cash flow doesn't cover its debt well. Recently, the company reported a net income of CNY 373 million for H1 2024, down from CNY 639 million a year ago. Contracted sales value reached RMB36.8 billion by August 2024 with an average selling price of RMB25,628 per sq.m., reflecting robust market activity despite profit challenges.
Take a closer look at Poly Property Group's potential here in our health report.
Explore historical data to track Poly Property Group's performance over time in our Past section.
Guoquan Food (Shanghai)
Simply Wall St Value Rating: ★★★★★☆
Overview: Guoquan Food (Shanghai) Co., Ltd. operates as a home meal products company in China with a market cap of HK$10.47 billion.
Operations: Guoquan Food (Shanghai) Co., Ltd. generates revenue primarily from retail grocery stores, amounting to CN￥5.998 billion.
Guoquan Food (Shanghai) saw a mixed first half of 2024, with sales reaching CNY 2.67 billion, down from CNY 2.76 billion the previous year. Net income also dipped to CNY 86 million from CNY 108 million. Basic earnings per share fell to CNY 0.0313 compared to last year's CNY 0.0403, reflecting some challenges in performance. The company held a board meeting on August 28, approving interim results and considering an interim dividend amidst executive changes and market volatility.
Shanghai Industrial Holdings
Simply Wall St Value Rating: ★★★★☆☆
Overview: Shanghai Industrial Holdings Limited is an investment holding company that operates in infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare across Hong Kong, China, the rest of Asia, and internationally with a market cap of HK$13.18 billion.
Operations: The company's revenue streams are primarily derived from real estate (HK$17.26 billion), infrastructure and environmental protection (HK$9.42 billion), and consumer products (HK$3.59 billion).
Shanghai Industrial Holdings, a small-cap player in the Hong Kong market, has shown robust performance with earnings growth of 25.6% over the past year, outpacing the Industrials industry at 4.1%. The company's net debt to equity ratio stands at 43.3%, indicating high leverage but manageable interest payments covered by EBIT (6.3x). Recent half-year results reported HK$10.37b in sales and HK$1.2b in net income, alongside an interim dividend of HK$0.42 per share for shareholders on record as of September 24, 2024.
Taking Advantage
Explore the 167 names from our SEHK Undiscovered Gems With Strong Fundamentals screener here.
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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.
Companies discussed in this article include SEHK:119 SEHK:2517 and SEHK:363.
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