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

In This Article:

As global markets experience volatility and economic indicators point to a potential slowdown, the Hong Kong market has shown resilience, with small-cap stocks presenting unique opportunities. In this environment, identifying undervalued small-cap stocks with insider action can be particularly rewarding for investors seeking growth potential amidst broader market uncertainties.

Top 5 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Shenzhen International Holdings

5.6x

0.7x

26.50%

★★★★★★

Shanghai Chicmax Cosmetic

15.6x

2.0x

-129.33%

★★★★☆☆

EVA Precision Industrial Holdings

4.6x

0.2x

14.94%

★★★★☆☆

Meilleure Health International Industry Group

25.0x

9.2x

24.72%

★★★☆☆☆

Analogue Holdings

12.5x

0.2x

44.66%

★★★☆☆☆

Skyworth Group

4.7x

0.1x

-139.03%

★★★☆☆☆

Lee & Man Paper Manufacturing

5.8x

0.3x

-18.81%

★★★☆☆☆

CN Logistics International Holdings

19.2x

0.4x

25.52%

★★★☆☆☆

Comba Telecom Systems Holdings

NA

0.6x

36.51%

★★★☆☆☆

Click here to see the full list of 9 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

Lee & Man Paper Manufacturing

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Lee & Man Paper Manufacturing is a company engaged in the production of packaging and tissue paper, with a market capitalization of HK$16.71 billion.

Operations: The company generates revenue from three primary segments: Packaging Paper, Tissue Paper, and Pulp. Over the observed periods, net income margin has shown a varied trend, with a recent figure of 5.96% as of June 2024.

PE: 5.8x

Lee & Man Paper Manufacturing, a smaller player in Hong Kong's market, recently declared an interim dividend of HK$0.062 per share for the first half of 2024. They reported sales of HK$12.51 billion and net income of HK$805.69 million, significantly up from last year’s figures. Notably, insider confidence is evident with Ho Chung Lee purchasing 483,000 shares worth over HK$1 million in July 2024. The company relies entirely on external borrowing but maintains a positive earnings growth forecast at 5.83% annually.

SEHK:2314 Ownership Breakdown as at Sep 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 approximately HK$3.2 billion.