The Hong Kong market has been experiencing a mix of cautious optimism and strategic positioning, particularly as global economic indicators suggest potential rate cuts and shifts in monetary policy. Amidst this backdrop, small-cap stocks have shown resilience, often outperforming their larger counterparts due to their agility and growth potential. In this environment, identifying promising stocks requires a keen eye for companies with strong fundamentals and innovative business models. This article highlights Medlive Technology along with two other promising small caps that could be considered undiscovered gems in the Hong Kong market.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Click here to see the full list of 171 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Medlive Technology

Simply Wall St Value Rating: ★★★★★★

Overview: Medlive Technology Co., Ltd. operates an online professional physician platform in Mainland China and internationally, with a market cap of HK$5.88 billion.

Operations: Medlive Technology generates revenue primarily from its healthcare software segment, which reported CN￥481.94 million.

Medlive Technology has shown impressive earnings growth of 53.5% over the past year, outpacing the Healthcare Services industry average of 11.1%. The company is debt-free and boasts a favorable price-to-earnings ratio of 18.4x, which is below the industry average of 23.6x. Recent half-year results reported sales at CNY 243 million and net income at CNY 147 million, both significantly higher than last year's figures, underscoring its strong financial health and growth potential in Hong Kong's market.

• Navigate through the intricacies of Medlive Technology with our comprehensive health report here.

• Assess Medlive Technology's past performance with our detailed historical performance reports.

Wanguo International Mining Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Wanguo International Mining Group Limited is an investment holding company involved in mining, ore processing, and the sale of concentrate products in the People’s Republic of China and Solomon Islands, with a market cap of HK$7.09 billion.

Operations: The company generates revenue primarily from its Yifeng Project (CN￥749.25 million) and Solomon Project (CN￥912.63 million).

Wanguo Gold Group, previously known as Wanguo International Mining, has shown impressive earnings growth of 89.9% over the past year, far outpacing the industry average of 17.3%. The company reported sales of ￥927.86 million for the first half of 2024, up from ￥581.19 million a year ago, with net income rising to ￥254.27 million from ￥147.11 million over the same period. Additionally, their debt-to-equity ratio increased slightly to 16.3% from 13.9% in five years while maintaining more cash than total debt and well-covered interest payments at a multiple of 91x EBIT coverage.

• Take a closer look at Wanguo International Mining Group's potential here in our health report.

• Understand Wanguo International Mining Group's track record by examining our Past report.

COSCO SHIPPING International (Hong Kong)

Simply Wall St Value Rating: ★★★★★★

Overview: COSCO SHIPPING International (Hong Kong) Co., Ltd. is an investment holding company that offers various shipping services both within the People’s Republic of China and internationally, with a market cap of HK$6.35 billion.

Operations: COSCO SHIPPING International (Hong Kong) Co., Ltd. generates revenue primarily from Marine Equipment and Spare Parts (HK$1.73 billion), Coatings (HK$992.94 million), General Trading (HK$478.19 million), Insurance Brokerage (HK$175.51 million), and Ship Trading Agency services (HK$99.97 million).

COSCO SHIPPING International (Hong Kong) has shown robust performance, reporting HKD 1.75 billion in sales for the first half of 2024, up from HKD 1.62 billion last year. Net income increased to HKD 388 million from HKD 336 million a year ago, with basic earnings per share rising to HKD 0.265 from HKD 0.227. The company declared an interim dividend of HKD 0.265 per share and recently appointed Mr. Ma Xianghui as a non-executive director, reflecting strong governance and strategic planning capabilities.

• Delve into the full analysis health report here for a deeper understanding of COSCO SHIPPING International (Hong Kong).

• Learn about COSCO SHIPPING International (Hong Kong)'s historical performance.

Next Steps

• Dive into all 171 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified here.

• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include SEHK:2192 SEHK:3939 and SEHK:517.

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