Undiscovered Gems in Hong Kong August 2024
Despite recent volatility in global markets, the Hong Kong market has shown resilience, with the Hang Seng Index gaining 0.85% amidst broader economic uncertainties. This environment presents a unique opportunity to explore lesser-known stocks that may offer significant potential for growth. When considering stocks in such a dynamic market, it's essential to look for companies with strong fundamentals and innovative strategies that can thrive despite external pressures.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
E-Commodities Holdings | 23.22% | 6.87% | 31.81% | ★★★★★★ |
S.A.S. Dragon Holdings | 37.35% | 4.13% | 12.06% | ★★★★★★ |
COSCO SHIPPING International (Hong Kong) | NA | -12.97% | 12.59% | ★★★★★★ |
PW Medtech Group | NA | 17.93% | -2.70% | ★★★★★★ |
Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
JiaXing Gas Group | 17.72% | 26.04% | 22.07% | ★★★★★☆ |
Hung Hing Printing Group | 3.97% | -2.51% | 33.57% | ★★★★★☆ |
Changjiu Holdings | 14.09% | 12.87% | -4.74% | ★★★★★☆ |
Time Interconnect Technology | 212.50% | 27.21% | 15.01% | ★★★★☆☆ |
Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
Kinetic Development Group
Simply Wall St Value Rating: ★★★★★☆
Overview: Kinetic Development Group Limited, with a market cap of HK$9.86 billion, is an investment holding company involved in the extraction and sale of coal products in the People’s Republic of China.
Operations: Kinetic Development Group generates revenue primarily from the extraction and sale of coal products in China. The company's net profit margin is currently at 15.23%.
Kinetic Development Group, a smaller player in Hong Kong's market, has shown mixed performance recently. The company repurchased shares in 2024 and announced a special dividend of HK$0.04 per share with payment on September 9, 2024. Its debt to equity ratio improved from 26.6% to 17.6% over five years, and interest payments are well covered by EBIT at 55.7x coverage. Despite high-quality earnings, it faced -22% earnings growth last year compared to the industry average of -6.8%.
YiChang HEC ChangJiang Pharmaceutical
Simply Wall St Value Rating: ★★★★★☆
Overview: YiChang HEC ChangJiang Pharmaceutical Co., Ltd. is engaged in the research, development, production, and sales of pharmaceutical products with a market cap of HK$8.39 billion.
Operations: YiChang HEC ChangJiang Pharmaceutical generates revenue primarily from the sales of pharmaceutical products, amounting to CN￥6.29 billion. The company's net profit margin for the latest period is %.
YiChang HEC ChangJiang Pharmaceutical has shown remarkable earnings growth of 2501.2% over the past year, outpacing the industry average. Its net debt to equity ratio stands at a satisfactory 9.2%, and interest payments are well covered by EBIT with a coverage ratio of 16.9x. The company announced a special dividend of HKD 1.5 per share in May 2024, reflecting strong financial health and commitment to shareholder returns despite earnings declining by an average of 15.7% annually over five years.
Sinopec Kantons Holdings
Simply Wall St Value Rating: ★★★★★★
Overview: Sinopec Kantons Holdings Limited, an investment holding company, provides crude oil jetty services and has a market cap of HK$11.34 billion.
Operations: The company generates revenue primarily from crude oil jetty and storage services, amounting to HK$609.87 million.
Sinopec Kantons Holdings, a niche player in the oil and gas sector, has seen its earnings surge by 198.6% over the past year, outpacing the industry average of -6.8%. The company repurchased shares recently and is trading at 77.3% below its estimated fair value. With no debt on its balance sheet compared to a 31.4% debt-to-equity ratio five years ago, Sinopec Kantons appears financially robust and poised for steady growth with earnings forecasted to increase by 4% annually.
Where To Now?
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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:1277 SEHK:1558 and SEHK:934.
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