The Hong Kong market has shown resilience amid global economic fluctuations, with the Hang Seng Index gaining 5.12% recently. This positive momentum provides a conducive environment for identifying promising growth companies with high insider ownership on the SEHK. In such a dynamic market, stocks with significant insider ownership can be particularly attractive as they often indicate strong confidence from those closest to the company’s operations and future prospects.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: DPC Dash Ltd, with a market cap of HK$8.47 billion, operates a chain of fast-food restaurants in the People’s Republic of China through its subsidiaries.
Operations: The company's revenue primarily comes from its fast-food restaurant operations in the People’s Republic of China, amounting to CN￥3.72 billion.
Insider Ownership: 38.2%
Earnings Growth Forecast: 104.2% p.a.
DPC Dash, a growth company with high insider ownership in Hong Kong, has shown impressive revenue growth of 24.9% per year and is expected to become profitable within the next three years. Recent earnings for H1 2024 reported sales of CNY 2.04 billion, up from CNY 1.38 billion a year ago, with net income rising to CNY 10.91 million. The company was recently added to the S&P Global BMI Index and celebrated its 900th store opening in Chengdu as part of an ambitious expansion strategy aiming for 1,000 stores by year's end.
Overview: Meituan is a technology retail company operating in the People's Republic of China with a market cap of approximately HK$802.90 billion.
Operations: The company's revenue segments include Core Local Commerce at CN￥228.13 billion and New Initiatives at CN￥77.56 billion.
Insider Ownership: 11.6%
Earnings Growth Forecast: 25.8% p.a.
Meituan has demonstrated solid growth, with earnings increasing by 175.5% over the past year and revenue for H1 2024 rising to CNY 155.53 billion from CNY 126.58 billion a year ago. The company has an active buyback program, repurchasing shares worth HKD 7.17 billion in recent tranches. Insider ownership remains high, supporting confidence in its forecasted annual profit growth of 25.8%, which outpaces the Hong Kong market average of 11.8%.
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of HK$209.46 billion.
Operations: The company's revenue segments include $13.23 billion from Power Equipment and $965.09 million from Floorcare & Cleaning products.
Insider Ownership: 25.4%
Earnings Growth Forecast: 15.3% p.a.
Techtronic Industries has demonstrated consistent growth, with earnings increasing to US$550.37 million for H1 2024 from US$475.78 million a year ago. Revenue is forecast to grow annually at 8.5%, surpassing the Hong Kong market average of 7.3%. Insider ownership remains significant, aligning with its projected annual profit growth of 15.32%, above the market's 11.8%. Recent executive changes and dividend increases further indicate strong internal confidence in future performance.
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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:1405 SEHK:3690 and SEHK:669.
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