The Hong Kong market has recently experienced a significant boost, driven by China's robust stimulus measures aimed at revitalizing its economy. This positive sentiment has spilled over into the Hang Seng Index, which saw substantial gains. In such an environment, growth companies with high insider ownership can be particularly attractive as they often indicate strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In Hong Kong
Overview: Kuaishou Technology, an investment holding company with a market cap of HK$236.57 billion, offers live streaming, online marketing, and other services in the People’s Republic of China.
Operations: The company's revenue segments are Domestic: CN￥117.32 billion and Overseas: CN￥3.57 billion.
Insider Ownership: 19.4%
Earnings Growth Forecast: 18.7% p.a.
Kuaishou Technology, a growth company with high insider ownership in Hong Kong, has shown strong performance with earnings forecasted to grow 18.7% annually, outpacing the market. Recent results highlight significant revenue and profit increases: Q2 sales were CNY 30.98 billion and net income was CNY 3.98 billion. The company is trading at good value compared to peers and industry estimates, and its Kling AI video generation model has seen substantial upgrades, enhancing user engagement and commercial potential.
Overview: BYD Company Limited, with a market cap of HK$926.83 billion, operates in the automobiles and batteries business across China, Hong Kong, Macau, Taiwan, and internationally.
Operations: The company generates revenue from Automobiles and Related Products and Other Products (CN￥507.52 billion) as well as Mobile Handset Components, Assembly Service, and Other Products (CN￥154.49 billion).
Insider Ownership: 30.1%
Earnings Growth Forecast: 15.2% p.a.
BYD has demonstrated robust growth, with recent production and sales volumes significantly up year-over-year. The company's half-year earnings report showed notable increases in revenue (CNY 294.77 billion) and net income (CNY 13.63 billion). BYD's strategic partnership with Uber aims to deploy 100,000 electric vehicles globally, enhancing its market presence. Despite a forecasted annual profit growth of 15.23%, which is above the market average, insider trading activity remains minimal over the past three months.
Overview: Meituan operates as a technology retail company in the People’s Republic of China with a market cap of approximately HK$1.02 trillion.
Operations: The company's revenue segments include CN￥228.13 billion from Core Local Commerce and CN￥77.56 billion from New Initiatives.
Insider Ownership: 11.8%
Earnings Growth Forecast: 26% p.a.
Meituan's earnings grew by 175.5% over the past year, with revenue forecasted to grow at 12.9% annually, outpacing the Hong Kong market's 7.3%. Earnings are expected to grow significantly at 26% per year. Recent buybacks have seen Meituan repurchase over HK$7 billion worth of shares, indicating strong insider confidence despite no substantial insider buying in the last three months. The company reported half-year sales of CNY 155.53 billion and net income of CNY 16.72 billion.
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:1024 SEHK:1211 and SEHK:3690.
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