Undiscovered Gems In Hong Kong And 3 Small Caps With Promising Potential

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In recent weeks, the Hong Kong market has experienced a notable uptick, buoyed by global economic developments and a positive sentiment shift following the U.S. Federal Reserve's rate cut. This environment presents an opportune moment to explore small-cap stocks that have promising potential yet remain under the radar. Identifying good stocks in this climate involves looking for companies with strong fundamentals and growth prospects that can capitalize on favorable economic conditions.

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%

★★★★★★

COSCO SHIPPING International (Hong Kong)

NA

-3.84%

16.33%

★★★★★★

Changjiu Holdings

NA

11.84%

2.46%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Billion Industrial Holdings

3.63%

18.00%

-11.38%

★★★★★☆

Time Interconnect Technology

212.50%

27.21%

15.01%

★★★★☆☆

Chongqing Machinery & Electric

27.77%

8.82%

11.12%

★★★★☆☆

Pizu Group Holdings

48.34%

-4.53%

-19.78%

★★★★☆☆

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

Here's a peek at a few of the choices from the screener.

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 has a market cap of HK$5.67 billion.

Morimatsu International Holdings has shown a robust financial profile, with earnings growing 35.1% annually over the past five years and a reduction in its debt-to-equity ratio from 54.2% to 5.7%. Despite these strengths, recent half-year results indicated sales of CNY 3.48 billion and net income of CNY 375.89 million, which were lower than the previous year's figures. The company initiated share repurchases on August 21, potentially enhancing net asset value per share and earnings per share moving forward.

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: ★★★★★☆