Undiscovered Gems In Hong Kong To Watch This October 2024

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As global markets react to China's robust stimulus measures, the Hang Seng Index in Hong Kong has seen a significant uptick, reflecting renewed investor optimism. This positive sentiment presents an opportune moment to explore some lesser-known stocks that could benefit from these economic tailwinds. In this dynamic environment, identifying stocks with strong fundamentals and growth potential becomes crucial for investors looking to capitalize on market movements.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Lion Rock Group

16.91%

14.33%

10.15%

★★★★★★

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%

★★★★★★

S.A.S. Dragon Holdings

60.96%

4.62%

10.02%

★★★★★☆

Lvji Technology Holdings

3.06%

4.56%

-1.87%

★★★★★☆

Billion Industrial Holdings

3.63%

18.00%

-11.38%

★★★★★☆

Time Interconnect Technology

151.14%

24.74%

19.78%

★★★★☆☆

Chongqing Machinery & Electric

27.77%

8.82%

11.12%

★★★★☆☆

Click here to see the full list of 167 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Poly Property Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Poly Property Group Co., Limited is an investment holding company that engages in property investment, development, and management in Hong Kong, the People’s Republic of China, and internationally, with a market cap of HK$6.80 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 income from hotel operations (CN¥377.21 million).

Poly Property Group's earnings surged 531% last year, outpacing the real estate sector's -11%. However, its debt-to-equity ratio remains high at 91.1%, and operating cash flow doesn't cover its debt well. Recently, the company reported a net income of CNY 373 million for H1 2024, down from CNY 639 million a year ago. Contracted sales value reached RMB36.8 billion by August 2024 with an average selling price of RMB25,628 per sq.m., reflecting robust market activity despite profit challenges.

SEHK:119 Debt to Equity as at Oct 2024
SEHK:119 Debt to Equity as at Oct 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$10.47 billion.