In October 2024, the Hong Kong market has been navigating a landscape marked by global economic shifts, with notable deflationary pressures in China and supportive measures from central banks worldwide. Amidst these developments, investors are increasingly focused on growth companies with high insider ownership as they seek stability and potential upside in uncertain times. Identifying stocks that combine robust growth prospects with significant insider investment can offer insights into companies where leadership is confident in their long-term vision and resilience.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: AAC Technologies Holdings Inc. is an investment holding company that offers solutions for smart devices across various regions including Mainland China, Hong Kong, Taiwan, other Asian countries, the United States, and Europe with a market cap of HK$40.03 billion.
Operations: The company's revenue is primarily derived from its key segments: Electromagnetic Drives and Precision Mechanics (CN￥8.28 billion), Acoustics Products (CN￥7.64 billion), Optics Products (CN￥4.07 billion), and Sensor and Semiconductor Products (CN￥0.92 billion).
Insider Ownership: 36.7%
Revenue Growth Forecast: 11.9% p.a.
AAC Technologies Holdings has demonstrated significant earnings growth, with an 81.3% increase over the past year and expected annual earnings growth of 21%, outpacing the Hong Kong market's forecast. Despite trading slightly below its fair value estimate, its revenue is projected to grow at a moderate pace of 11.9% annually, faster than the local market average. Recent financial results showed substantial sales and net income increases for H1 2024, reflecting robust operational performance.
Overview: Shenzhen Pagoda Industrial (Group) Corporation Limited is a fruit retailer operating in China, Indonesia, Singapore, Hong Kong, and internationally with a market cap of HK$2.40 billion.
Operations: The company's revenue segments include Trading at CN￥1.15 billion and Franchising at CN￥9.88 billion.
Insider Ownership: 26.2%
Revenue Growth Forecast: 15.2% p.a.
Shenzhen Pagoda Industrial (Group) is experiencing significant earnings growth, with forecasts suggesting a 37.94% annual increase over the next three years, surpassing the Hong Kong market average. Despite recent financial challenges, including a drop in net income to CNY 88.51 million for H1 2024 due to strategic investments and weaker consumer demand, the company is executing share repurchases to enhance shareholder value. Revenue growth of 15.2% annually outpaces local market expectations.
Overview: Akeso, Inc. is a biopharmaceutical company that focuses on researching, developing, manufacturing, and commercializing antibody drugs with a market cap of HK$59.92 billion.
Operations: The company's revenue from the research, development, production, and sale of biopharmaceutical products is CN￥1.87 billion.
Insider Ownership: 20.5%
Revenue Growth Forecast: 33.5% p.a.
Akeso, Inc. is positioned for growth with strong insider ownership and promising product developments. The company recently announced positive Phase 3 study results for cadonilimab, enhancing its potential in treating cervical cancer. Additionally, Akeso secured approval for ebronucimab in China, expanding its non-oncology portfolio. Despite past shareholder dilution and a significant drop in revenue to CNY 1.02 billion for H1 2024, forecasts suggest robust annual revenue growth of 33.5%, outpacing the Hong Kong market average.
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:2018 SEHK:2411 and SEHK:9926.
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