The Hong Kong market has shown resilience amid global economic fluctuations, with the Hang Seng Index recently advancing despite a light economic calendar and caution ahead of key announcements. This backdrop of cautious optimism makes it an opportune time to explore growth companies with high insider ownership, as such stocks often benefit from aligned interests between shareholders and management, potentially driving robust performance in favorable market conditions.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Kingdee International Software Group Company Limited, an investment holding company with a market cap of HK$21.95 billion, operates in the enterprise resource planning business.
Operations: Kingdee International Software Group Company Limited generates revenue primarily from its Cloud Service Business (CN￥4.86 billion) and ERP Business (CN￥1.13 billion).
Insider Ownership: 19.7%
Revenue Growth Forecast: 14.0% p.a.
Kingdee International Software Group, with substantial insider ownership, is forecasted to grow earnings by 45.87% annually and become profitable within three years. Despite trading at 83.4% below its estimated fair value, the company has experienced shareholder dilution in the past year. Recent H1 2024 results showed a revenue increase to ￥2.87 billion from ￥2.57 billion year-on-year, although net losses narrowed slightly from ￥283.54 million to ￥217.85 million.
Overview: Meituan, a technology retail company operating in the People's Republic of China, has a market cap of approximately HK$703.64 billion.
Operations: The company generates revenue from two main segments: Core Local Commerce (CN￥228.13 billion) and New Initiatives (CN￥77.56 billion).
Insider Ownership: 11.6%
Revenue Growth Forecast: 12.9% p.a.
Meituan, with significant insider ownership, is forecast to grow earnings by 25.02% annually and revenue by 12.9% per year, outpacing the Hong Kong market. Despite trading at 70.1% below its estimated fair value, recent H1 2024 results showed sales rising to ￥155.53 billion from ￥126.58 billion and net income doubling to ￥16.72 billion year-on-year. The company also announced a $1 billion share repurchase program in August 2024.
Overview: Akeso, Inc. is a biopharmaceutical company that researches, develops, manufactures, and commercializes antibody drugs with a market cap of HK$41.78 billion.
Operations: The company's revenue from the research, development, production, and sale of biopharmaceutical products amounts to CN￥1.87 billion.
Insider Ownership: 20.5%
Revenue Growth Forecast: 33% p.a.
Akeso, with substantial insider ownership, is expected to grow revenue by 33% annually and become profitable within three years. Despite trading at 52.3% below its estimated fair value, recent H1 2024 results showed a significant drop in revenue to ￥1.02 billion from ￥3.68 billion year-on-year and a net loss of ￥238.59 million compared to a net income of ￥2.53 billion previously. Analysts agree the stock price may rise by 25%.
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:268 SEHK:3690 and SEHK:9926.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]