Hong Kong's Top 3 Undervalued Small Caps With Insider Buying
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The Hong Kong market has seen a notable uptick, with the Hang Seng Index gaining 5.12% recently, driven by a broader positive sentiment following the U.S. Federal Reserve's rate cut. This favorable environment presents an opportune moment to explore undervalued small-cap stocks that have shown potential through insider buying. In this context, identifying stocks with strong fundamentals and insider confidence can be particularly rewarding for investors looking to capitalize on current market conditions.
Top 5 Undervalued Small Caps With Insider Buying In Hong Kong
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Shanghai Chicmax Cosmetic | 15.3x | 1.9x | -125.19% | ★★★★☆☆ |
| EVA Precision Industrial Holdings | 4.5x | 0.2x | 83.78% | ★★★★☆☆ |
| Ferretti | 10.2x | 0.7x | 49.90% | ★★★★☆☆ |
| Meilleure Health International Industry Group | 26.3x | 9.7x | 20.53% | ★★★☆☆☆ |
| Analogue Holdings | 13.8x | 0.2x | 39.50% | ★★★☆☆☆ |
| Skyworth Group | 5.1x | 0.1x | -160.23% | ★★★☆☆☆ |
| Lee & Man Paper Manufacturing | 6.1x | 0.4x | -25.25% | ★★★☆☆☆ |
Let's uncover some gems from our specialized screener.
Shanghai Chicmax Cosmetic
Simply Wall St Value Rating: ★★★★☆☆
Overview: Shanghai Chicmax Cosmetic is engaged in the manufacture and sale of cosmetic products, with a market cap of CN￥7.45 billion.
Operations: The company generates revenue primarily from the manufacture and sale of cosmetic products, with a notable gross profit margin reaching 74.96% in the latest period. Operating expenses include significant allocations to sales and marketing, R&D, and general administrative costs.
PE: 15.3x
Shanghai Chicmax Cosmetic, a small cap in Hong Kong, has shown significant growth with first-half 2024 sales at CNY 3.5 billion, up from CNY 1.6 billion last year. Net income surged to CNY 401 million from CNY 101 million. The company proposed a dividend of RMB 0.75 per share for the period ending June 30, with insider confidence evident through recent share purchases in August and September. Amendments to bylaws will be discussed on September 30, signaling potential strategic shifts ahead.
Lee & Man Paper Manufacturing
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Lee & Man Paper Manufacturing operates in the production of pulp, tissue paper, and packaging paper with a market capitalization of HK$22.40 billion.
Operations: Lee & Man Paper Manufacturing generates revenue primarily from packaging paper and tissue paper, with packaging paper contributing the largest share. The company has experienced fluctuations in its gross profit margin, which reached 29.08% in December 2017 but decreased to 12.49% by June 2024. Operating expenses include significant allocations for sales and marketing as well as general and administrative costs.