Undiscovered Gems In Hong Kong Three Small Caps With Strong Potential

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With China's recent stimulus measures providing a boost to the Hong Kong market, small-cap stocks are poised to benefit from renewed investor interest and economic optimism. In this favorable environment, identifying stocks with strong fundamentals and growth potential becomes crucial for capitalizing on emerging opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

E-Commodities Holdings

21.33%

9.04%

28.46%

★★★★★★

C&D Property Management Group

1.32%

37.15%

41.55%

★★★★★★

COSCO SHIPPING International (Hong Kong)

NA

-3.84%

16.33%

★★★★★★

ManpowerGroup Greater China

NA

14.56%

1.58%

★★★★★★

Changjiu Holdings

NA

11.84%

2.46%

★★★★★★

Sundart Holdings

0.92%

-2.32%

-3.94%

★★★★★★

China Leon Inspection Holding

8.55%

21.36%

22.77%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Xin Point Holdings

1.77%

10.88%

22.83%

★★★★★☆

Pizu Group Holdings

48.34%

-4.53%

-19.78%

★★★★☆☆

Click here to see the full list of 169 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Poly Property Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Poly Property Group Co., Limited is an investment holding company involved in property investment, development, and management across Hong Kong, the People’s Republic of China, and internationally with a market cap of HK$6.23 billion.

Operations: Poly Property Group generates revenue primarily from its property development business (CN¥35.59 billion) and property investment and management (CN¥1.87 billion), with additional contributions from hotel operations (CN¥377.21 million).

Poly Property Group has shown significant earnings growth of 531% over the past year, outpacing the Real Estate industry’s -11%. Despite this, net income for the first half of 2024 was CNY 373.23 million, down from CNY 639.21 million a year ago. The company reported contracted sales value of RMB 36.8 billion as of August 2024, with an average selling price of approximately RMB 25,628 per sq.m. However, debt remains high with a net debt to equity ratio at 91.1%.

SEHK:119 Debt to Equity as at Sep 2024
SEHK:119 Debt to Equity as at Sep 2024

Guoquan Food (Shanghai)

Simply Wall St Value Rating: ★★★★★☆

Overview: Guoquan Food (Shanghai) Co., Ltd. operates as a home meal products company in China with a market cap of HK$8.13 billion.

Operations: Guoquan Food (Shanghai) Co., Ltd. generates revenue primarily from retail sales in grocery stores, amounting to CN¥5.998 billion. The company's financial performance is influenced by its cost structure and profit margins, with a notable focus on the net profit margin trend over recent periods.