July 2024 Insight On Hong Kong's Undervalued Small Caps With Insider Actions

In This Article:

Amidst a backdrop of mixed global market performances, Hong Kong's small-cap sector presents unique opportunities. As broader indices like the Russell 2000 show modest gains, understanding the intrinsic qualities that contribute to a stock being undervalued becomes crucial in today’s dynamic economic environment.

Top 10 Undervalued Small Caps With Insider Buying In Hong Kong

Name

PE

PS

Discount to Fair Value

Value Rating

Ferretti

11.1x

0.8x

46.23%

★★★★★☆

Ever Sunshine Services Group

5.7x

0.4x

21.25%

★★★★★☆

Wasion Holdings

10.8x

0.8x

35.45%

★★★★☆☆

Kinetic Development Group

3.9x

1.7x

21.88%

★★★★☆☆

Nissin Foods

14.3x

1.3x

41.66%

★★★★☆☆

China Leon Inspection Holding

9.9x

0.7x

27.19%

★★★★☆☆

Transport International Holdings

11.6x

0.6x

44.07%

★★★★☆☆

Skyworth Group

5.6x

0.1x

-308.43%

★★★☆☆☆

Shenzhen International Holdings

8.0x

0.7x

14.72%

★★★☆☆☆

Jinke Smart Services Group

NA

0.8x

37.52%

★★★☆☆☆

Click here to see the full list of 16 stocks from our Undervalued SEHK Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Shenzhen International Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Shenzhen International Holdings operates in logistics, including parks and services, port-related services, toll roads, and environmental protection businesses.

Operations: The company's gross profit margin has shown variability over the observed periods, ranging from 26.70% to 39.76%, reflecting changes in cost of goods sold and revenue dynamics. Notably, the net income margin also fluctuated, indicating shifts in operational efficiency and non-operating expenses influence.

PE: 8.0x

Shenzhen International Holdings, often spotlighted for its potential in the Hong Kong small-cap sector, recently underscored insider confidence with a significant purchase by Zhengyu Liu, who acquired 693,000 shares. This move in July 2024 reflects a robust belief in the company's prospects amidst financial challenges like debt not being well covered by operating cash flow. Additionally, recent board changes and strategic investments hint at a dynamic approach to governance and expansion. The company's decision to pay dividends partially via Scrip Shares also suggests an innovative financial strategy aimed at maintaining liquidity while rewarding shareholders.

SEHK:152 Share price vs Value as at Jul 2024

Wasion Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: Wasion Holdings is a company engaged in the manufacturing and sale of advanced metering products, with operations spanning power, communication, and fluid metering infrastructure, boasting a market capitalization of approximately CN¥4.37 billion.