SEHK Growth Leaders With High Insider Stakes

As global markets navigate through varying economic signals, the Hong Kong market has shown resilience despite facing challenges such as a slowing economy and foreign selling pressures. In this context, growth companies with high insider ownership in Hong Kong can offer investors potential stability and alignment of interests between shareholders and management. A good stock in this category typically demonstrates robust growth prospects backed by the confidence of insiders who have significant skin in the game, making these stocks particularly compelling during uncertain times.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

Name	Insider Ownership	Earnings Growth
iDreamSky Technology Holdings (SEHK:1119)	20.2%	104.1%
Fenbi (SEHK:2469)	32.6%	43%
Adicon Holdings (SEHK:9860)	22.4%	28.3%
Tian Tu Capital (SEHK:1973)	34%	70.5%
DPC Dash (SEHK:1405)	38.2%	90.2%
Zylox-Tonbridge Medical Technology (SEHK:2190)	18.7%	79.3%
Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)	13.9%	100.1%
Ocumension Therapeutics (SEHK:1477)	23.1%	93.7%
Zhejiang Leapmotor Technology (SEHK:9863)	15%	74.2%
Beijing Airdoc Technology (SEHK:2251)	28.7%	83.9%

Click here to see the full list of 54 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

BYD

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BYD Company Limited operates in the automobile and battery sectors across China, Hong Kong, Macau, Taiwan, and internationally, with a market capitalization of approximately HK$732.26 billion.

Operations: The company's revenue is derived from its automobile and battery sectors across various regions including China, Hong Kong, Macau, Taiwan, and internationally.

Insider Ownership: 30.1%

Earnings Growth Forecast: 14.8% p.a.

BYD, a prominent player in Hong Kong's growth sector with high insider ownership, demonstrates robust operational momentum. Recent enhancements to its bylaws and a consistent dividend payout (RMB 3.098 per share) underscore stable governance and shareholder regard. Noteworthy is BYD's production surge, with significant year-over-year increases reported in May 2024. The launch of the BYD SHARK in Mexico marks a strategic expansion into global markets, capitalizing on advanced hybrid technologies and substantial sales growth, further evidenced by impressive annual revenue forecasts outpacing the local market average.

• Unlock comprehensive insights into our analysis of BYD stock in this growth report.

• Upon reviewing our latest valuation report, BYD's share price might be too optimistic.

SEHK:1211 Ownership Breakdown as at Jul 2024

ESR Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ESR Group Limited operates in logistics real estate development, leasing, and management across regions including Hong Kong, China, Japan, South Korea, Australia, New Zealand, Southeast Asia, India, and Europe with a market capitalization of approximately HK$47.19 billion.

Operations: The company generates revenue primarily through fund management at HK$774.64 million and new economy development, contributing HK$105.48 million.

Insider Ownership: 13.1%

Earnings Growth Forecast: 26.5% p.a.

ESR Group, a key entity in Hong Kong's growth sectors with substantial insider ownership, faces mixed financial dynamics. Despite its profit margins declining from the previous year, ESR's earnings are expected to grow significantly over the next three years. However, its interest payments are poorly covered by earnings and one-off items have impacted financial results. Recently, ESR has been involved in potential privatization talks with a consortium including major investors like Warburg Pincus, indicating strategic shifts that could influence its market standing and shareholder value.

• Click to explore a detailed breakdown of our findings in ESR Group's earnings growth report.

• Our comprehensive valuation report raises the possibility that ESR Group is priced higher than what may be justified by its financials.

SEHK:1821 Ownership Breakdown as at Jul 2024

Meituan

Simply Wall St Growth Rating: ★★★★★☆

Overview: Meituan is a technology retail company based in the People’s Republic of China, with a market capitalization of approximately HK$736.58 billion.

Operations: The company generates its revenue through technology retail operations in China.

Insider Ownership: 11.4%

Earnings Growth Forecast: 31.4% p.a.

Meituan, a growth-oriented company in Hong Kong with high insider ownership, has recently demonstrated robust financial performance. In Q1 2024, the company reported a significant increase in sales and net income. It also announced a substantial share repurchase program valued at HK$2 billion, reflecting strong confidence from its board. Despite some insider selling over the past three months, Meituan's revenue and earnings are expected to outpace the market significantly with forecasted annual growth rates of 12.8% and 31.4% respectively.

• Take a closer look at Meituan's potential here in our earnings growth report.

• Our valuation report unveils the possibility Meituan's shares may be trading at a premium.

SEHK:3690 Ownership Breakdown as at Jul 2024

Turning Ideas Into Actions

• Reveal the 54 hidden gems among our Fast Growing SEHK Companies With High Insider Ownership screener with a single click here.

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Seeking Other Investments?

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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:1211 SEHK:1821 and SEHK:3690.

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