Discovering Undiscovered Gems in Hong Kong September 2024

In This Article:

As global markets react to the Federal Reserve's first rate cut in over four years, small-cap indices have shown resilience despite remaining below their all-time highs. This backdrop provides a unique opportunity to explore lesser-known stocks in Hong Kong that could benefit from the evolving economic landscape. In this context, identifying promising stocks involves looking for companies with strong fundamentals, growth potential, and the ability to navigate current market conditions effectively.

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%

★★★★★★

E-Commodities Holdings

21.33%

9.04%

28.46%

★★★★★★

C&D Property Management Group

1.32%

37.15%

41.55%

★★★★★★

PW Medtech Group

0.06%

22.33%

-17.56%

★★★★★★

ManpowerGroup Greater China

NA

14.56%

1.58%

★★★★★★

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%

★★★★★☆

S.A.S. Dragon Holdings

60.96%

4.62%

10.02%

★★★★★☆

Chongqing Machinery & Electric

27.77%

8.82%

11.12%

★★★★☆☆

Click here to see the full list of 170 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Morimatsu International Holdings

Simply Wall St Value Rating: ★★★★★★

Overview: Morimatsu International Holdings Company Limited designs, manufactures, installs, operates, and maintains process equipment and systems for chemical, polymerization, and bio-reactions in China and internationally with a market cap of HK$5.67 billion.

Operations: Morimatsu International Holdings generates revenue primarily from the production and sales of various pressure equipment, amounting to CN¥7.15 billion. The company's net profit margin is %.

Morimatsu International Holdings has seen its debt to equity ratio drop from 54.2% to 5.7% over the past five years, indicating strong financial health. Despite earnings growth of 35.1% annually over the same period, recent figures show a net income of CNY375.89 million for H1 2024, down from CNY422.35 million last year. Trading at a significant discount to fair value (66%), Morimatsu also initiated share repurchases in August 2024, enhancing shareholder value through potential EPS improvement.

SEHK:2155 Earnings and Revenue Growth as at Sep 2024
SEHK:2155 Earnings and Revenue Growth as at Sep 2024

Guoquan Food (Shanghai)

Simply Wall St Value Rating: ★★★★★☆