3 Top Undervalued Small Caps In Hong Kong With Insider Buying

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The Hong Kong market has recently seen mixed performance, with the benchmark Hang Seng Index gaining 2.14% amidst a backdrop of underwhelming corporate earnings and economic challenges in China. Despite these headwinds, there are opportunities to be found, particularly in undervalued small-cap stocks that have caught the attention of insiders. In this article, we will explore three such small-cap companies that present potential value based on current market conditions and insider buying activities.

Top 10 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Shenzhen International Holdings

6.0x

0.7x

27.74%

★★★★★★

Ever Sunshine Services Group

6.0x

0.4x

41.22%

★★★★★☆

Lion Rock Group

5.7x

0.4x

48.19%

★★★★☆☆

Ferretti

10.6x

0.7x

47.48%

★★★★☆☆

Meilleure Health International Industry Group

23.0x

8.5x

29.37%

★★★☆☆☆

Giordano International

9.8x

0.7x

21.94%

★★★☆☆☆

Skyworth Group

5.2x

0.1x

-166.02%

★★★☆☆☆

Lee & Man Paper Manufacturing

6.2x

0.4x

-27.00%

★★★☆☆☆

CN Logistics International Holdings

20.4x

0.5x

21.89%

★★★☆☆☆

Comba Telecom Systems Holdings

NA

0.6x

36.96%

★★★☆☆☆

Click here to see the full list of 16 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Shanghai Chicmax Cosmetic

Simply Wall St Value Rating: ★★★★☆☆

Overview: Shanghai Chicmax Cosmetic is a company engaged in the manufacture and sale of cosmetic products with a market capitalization of CN¥7.89 billion.

Operations: Shanghai Chicmax Cosmetic's revenue primarily comes from the manufacture and sale of cosmetic products, with a gross profit margin reaching 74.96% as of June 30, 2024. The company incurs significant operating expenses, particularly in sales and marketing, which amounted to CN¥3.41 billion in the same period.

PE: 18.0x

Shanghai Chicmax Cosmetic, a small player in Hong Kong's market, has shown promising growth. For the half year ending June 30, 2024, sales surged to ¥3.5 billion from ¥1.6 billion a year ago, while net income jumped to ¥401 million from ¥101 million. Basic earnings per share rose to ¥1.01 from ¥0.25 last year. Insider confidence is evident with recent share purchases by executives in August 2024, signaling potential undervaluation and future growth prospects for the company.

SEHK:2145 Ownership Breakdown as at Sep 2024
SEHK:2145 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 HK$2.16 billion.