3 SEHK growth companies with insider ownership expecting earnings growth of up to 71%

As global markets experience mixed economic changes, with notable declines in Hong Kong’s Hang Seng Index, investors are keeping a close eye on growth opportunities in the region. In this environment, companies with large insider ownership and significant earnings growth potential stand out as potentially strong contenders for those looking to effectively navigate market fluctuations.

Top 10 Growth Companies with High Insider Ownership in Hong Kong

Click here to view the full list of 47 stocks in our fast-growing SEHK companies with high insider ownership.

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

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beauty Farm Medical and Health Industry Inc. operates in the beauty and health sector, offering medical cosmetology services, with a market capitalization of HK$4.02 billion.

Operations: The company generates revenue from various segments including CN¥851.81 million from Aesthetic Medical Services, CN¥125.69 million from Subhealth Medical Services, CN¥1.14 million from Beauty & Wellness Services – Shops direct and CN¥131.48 million from Beauty and Wellness Services – Franchise and others.

Privileged property: 33.9%

Earnings growth forecast: 20.2% annually

Beauty Farm’s medical and healthcare industry shows promising growth potential, with earnings expected to grow significantly at 20.2% annually, outperforming the Hong Kong market. The latest half-year results recorded sales of CNY 1.14 billion and net income of CNY 115.42 billion, reflecting steady growth. Despite no recent insider activity, high insider ownership aligns interests with shareholders. The appointment of Mr. Hu Tenghe as a non-executive director strengthens the board with his extensive experience in capital markets.

Simply Wall St Growth Rating: ★★★★★☆

The story continues

Overview: Jiangxi Rimag Group Co., Ltd. operates medical imaging centers in China and has a market capitalization of approximately HK$10.87 billion.

Operations: The company’s revenue mainly comes from its Medical Labs & Research segment, amounting to CN¥812.85 million.

Privileged property: 24.3%

Earnings growth forecast: 71.8% annually

Jiangxi Rimag Group’s growth trajectory is marked by expected revenue and earnings growth rates of 30% and 71.8% per annum, exceeding the Hong Kong market averages. Despite the drop in profit margins to 0.6%, the company trades at a significant discount to its estimated fair value. The latest half-year results showed sales of CNY 413.71 million, down from CNY 529.78 million, with net income falling to CNY 3.84 million, highlighting challenges amid expectations of rapid expansion with no recent evidence of substantial insider trading activity.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Techtronic Industries Company Limited designs, manufactures and markets power tools, outdoor power equipment and cleaning and floor care products in North America, Europe and internationally with a market capitalization of approximately HK$207.81 billion.

Operations: The company’s revenue is primarily derived from its electrical equipment segment, which generated $13.23 billion, and its cleaning and floor care segment, which contributed $965.09 million.

Privileged property: 25.4%

Earnings growth forecast: 15.3% annually

Techtronic Industries is experiencing solid growth, with earnings forecast to rise 15.3% annually, beating the Hong Kong market average of 12.1%. The latest half-year results reported sales of $7.31 billion and net income of $550.37 million, indicating consistent financial performance. The company trades at a significant discount to its estimated fair value and has strong insider ownership with no significant recent insider activity, suggesting confidence in its long-term prospects.

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This Simply Wall St article 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 shares, and does not take into account your goals or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stock mentioned. The analysis only considers shares held directly by insiders. It does not include shares owned indirectly through other vehicles, such as corporate and/or trust entities. All projected revenue and earnings growth rates are shown in terms of annualized growth rates (per year) over 1-3 years.

Companies discussed in this article include SEHK:2373 SEHK:2522 and SEHK:669.

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