Exploring Kinetic Development Group And Two Other Undervalued Small Caps With Insider Action In Hong Kong

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Amid a backdrop of global economic shifts and market fluctuations, the Hong Kong stock market has experienced its own unique dynamics. As investors seek value in a complex landscape, identifying undervalued small-cap stocks like Kinetic Development Group becomes particularly compelling.

Top 10 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Xtep International Holdings

10.7x

0.8x

44.30%

★★★★★★

Wasion Holdings

11.4x

0.8x

31.75%

★★★★☆☆

Sany Heavy Equipment International Holdings

8.0x

0.7x

-23.28%

★★★★☆☆

China Overseas Grand Oceans Group

2.9x

0.1x

-5.83%

★★★★☆☆

Nissin Foods

14.8x

1.3x

39.52%

★★★★☆☆

China Leon Inspection Holding

9.4x

0.7x

29.93%

★★★★☆☆

Transport International Holdings

11.4x

0.6x

44.93%

★★★★☆☆

Giordano International

8.6x

0.8x

36.33%

★★★☆☆☆

Shenzhen International Holdings

8.2x

0.8x

11.67%

★★★☆☆☆

Kinetic Development Group

4.2x

1.8x

15.22%

★★★☆☆☆

Click here to see the full list of 16 stocks from our Undervalued Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Kinetic Development Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kinetic Development Group is a company involved in property investment, development, and management, with a market capitalization of approximately CN¥1.07 billion.

Operations: The company has experienced a significant increase in gross profit margin, rising from 9.05% in September 2013 to 59.07% by December 2024, reflecting improved efficiency or higher-margin products. Over the same period, revenue grew from CN¥102.90 million to CN¥4745.07 million, indicating substantial business expansion and increased market presence.

PE: 4.2x

Kinetic Development Group, navigating through a landscape of strategic corporate adjustments and financial distributions, recently approved significant changes to its governance structures and reduced its annual dividend to HK$0.05 per share. Amid these shifts, they also announced a special dividend of HK$0.03 per share, underscoring their ability to return value despite external borrowing as their sole funding source—a higher risk strategy that demands meticulous management. This series of decisions reflects a nuanced approach to maintaining liquidity while fostering shareholder confidence, particularly noted by insider purchases in recent months which signal strong belief in the company's trajectory.

SEHK:1277 Share price vs Value as at Jul 2024

Transport International Holdings

Simply Wall St Value Rating: ★★★★☆☆