Top Undervalued Small Caps With Insider Action In Hong Kong For August 2024

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As the Hong Kong market navigates through a period of economic uncertainty, small-cap stocks have shown resilience amid broader market fluctuations. In this context, identifying undervalued small-caps with notable insider action can offer unique investment opportunities for those looking to capitalize on potential growth and insider confidence.

Top 10 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Ever Sunshine Services Group

5.6x

0.4x

25.63%

★★★★★☆

Ferretti

11.4x

0.8x

44.75%

★★★★★☆

Wasion Holdings

11.6x

0.8x

39.35%

★★★★☆☆

K. Wah International Holdings

7.0x

0.9x

26.06%

★★★★☆☆

Lion Rock Group

6.7x

0.5x

31.13%

★★★★☆☆

Comba Telecom Systems Holdings

369.1x

0.4x

43.85%

★★★★☆☆

Skyworth Group

5.4x

0.1x

-245.50%

★★★☆☆☆

China Leon Inspection Holding

9.6x

0.7x

37.30%

★★★☆☆☆

Lee & Man Paper Manufacturing

6.5x

0.4x

-32.27%

★★★☆☆☆

Truly International Holdings

12.0x

0.2x

39.91%

★★★☆☆☆

Click here to see the full list of 13 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

K. Wah International Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: K. Wah International Holdings is a property development and investment company with operations in Hong Kong and Mainland China, having a market cap of HK$8.72 billion.

Operations: The company generates revenue primarily from property development in Mainland China and Hong Kong, along with property investment. For the period ending 2023-12-31, it reported a gross profit margin of 33.07%.

PE: 7.0x

K. Wah International Holdings, a small cap stock in Hong Kong, recently recommended a final dividend of HK$0.09 per share for 2023, payable on 24 July 2024. The company relies entirely on external borrowing for funding, which is riskier compared to customer deposits. However, earnings are projected to grow by 8.63% annually. Insider confidence is evident with significant share purchases over the past year, indicating potential growth and value recognition within the market.

SEHK:173 Share price vs Value as at Aug 2024

Comba Telecom Systems Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: Comba Telecom Systems Holdings specializes in providing wireless telecommunications network system equipment and services, as well as operator telecommunication services, with a market cap of HK$1.59 billion.

Operations: The company generates revenue primarily from Wireless Telecommunications Network System Equipment and Services (HK$5824.14 million) and Operator Telecommunication Services (HK$157.83 million). The cost of goods sold (COGS) for the most recent period was HK$4319.29 million, leading to a gross profit of HK$1662.69 million with a gross profit margin of 27.79%. Operating expenses amounted to HK$1701.78 million, impacting the net income which stood at HK$6.70 million with a net income margin of 0.11%.