SEHK Growth Companies With High Insider Ownership Showcasing Promising Futures

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Amidst a landscape of fluctuating global markets, the Hong Kong stock market continues to present unique opportunities for discerning investors. This article explores three growth-oriented companies in the SEHK with high insider ownership, a trait often associated with strong confidence in a company's future prospects and alignment of interests between shareholders and management.

Top 10 Growth Companies With High Insider Ownership In Hong Kong

Name

Insider Ownership

Earnings Growth

iDreamSky Technology Holdings (SEHK:1119)

20.1%

104.1%

Fenbi (SEHK:2469)

32.4%

43%

Joy Spreader Group (SEHK:6988)

36.5%

107.6%

DPC Dash (SEHK:1405)

38.2%

89.7%

Zylox-Tonbridge Medical Technology (SEHK:2190)

18.5%

79.3%

Adicon Holdings (SEHK:9860)

22.3%

29.6%

Tian Tu Capital (SEHK:1973)

34%

70.5%

Biocytogen Pharmaceuticals (Beijing) (SEHK:2315)

13.9%

100.1%

Zhejiang Leapmotor Technology (SEHK:9863)

15%

76.5%

Beijing Airdoc Technology (SEHK:2251)

28.2%

83.9%

Click here to see the full list of 51 stocks from our Fast Growing SEHK Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Biocytogen Pharmaceuticals (Beijing)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Biocytogen Pharmaceuticals (Beijing) Co., Ltd. is a biotechnology firm focused on the research and development of antibody-based drugs, operating in the People’s Republic of China, the United States, and internationally, with a market capitalization of approximately HK$2.99 billion.

Operations: Biocytogen Pharmaceuticals generates revenue primarily through Animal Models Selling (CN¥293.68 million), Pre-Clinical Pharmacology and Efficacy Evaluation (CN¥193.40 million), Antibody Development (CN¥175.87 million), and Gene Editing (CN¥74.33 million).

Insider Ownership: 13.9%

Earnings Growth Forecast: 100.1% p.a.

Biocytogen Pharmaceuticals (Beijing) demonstrates potential as a growth company with high insider ownership, despite its challenges. Recently, the firm announced collaborations with BioCopy AG and ABL Bio Inc., leveraging its proprietary platforms to develop novel cancer therapies and antibody-drug conjugates. Although it reported a significant reduction in net loss from CNY 601.95 million to CNY 382.95 million year-over-year, the company still operates at a loss. However, revenue growth is robust at 34.3% over the past year, outpacing industry averages significantly, with expectations of continued expansion and profitability within three years.

SEHK:2315 Ownership Breakdown as at Jun 2024
SEHK:2315 Ownership Breakdown as at Jun 2024

Beauty Farm Medical and Health Industry

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beauty Farm Medical and Health Industry Inc. operates in the healthcare sector and has a market capitalization of approximately HK$3.77 billion.

Operations: Beauty Farm Medical and Health Industry Inc. generates revenue primarily from three segments: Aesthetic Medical Services (CN¥850.36 million), Subhealth Medical Services (CN¥101.04 million), and Beauty and Wellness Services through both direct stores and franchisees (CN¥1.19 billion).

Insider Ownership: 33.9%

Earnings Growth Forecast: 22.9% p.a.

Beauty Farm Medical and Health Industry Inc. in Hong Kong highlights promising growth with high insider ownership. The company's recent dividend increase to HK$110.8 million underscores strong financial health, complemented by a robust year-over-year earnings growth from CNY 1,635.41 million to CNY 2,145.07 million and net income doubling to CNY 215.66 million. Forecasts suggest an annual profit growth of 22.9% and revenue expansion at 18.6%, both outpacing the local market significantly, while trading at a substantial discount to its estimated fair value.

SEHK:2373 Ownership Breakdown as at Jun 2024
SEHK:2373 Ownership Breakdown as at Jun 2024

Arrail Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arrail Group Limited, a company that operates dental hospitals and clinics in China, has a market capitalization of approximately HK$2.51 billion.

Operations: The company generates its revenue primarily through two segments: Arrail Dental, which contributed CN¥0.73 billion, and Rytime Dental, with CN¥0.86 billion in revenues.

Insider Ownership: 14.7%

Earnings Growth Forecast: 109.7% p.a.

Arrail Group, despite trading at 72.8% below its estimated fair value, presents challenges with insider activities and modest growth forecasts in Hong Kong. While there has been significant insider selling recently, the company is expected to turn profitable within three years. Its revenue growth forecast of 12% per year outpaces the local market's 7.8%, but remains below more aggressive growth benchmarks. Analysts anticipate a potential price increase of 67.4%, reflecting optimism about its future profitability and earnings expansion projected at 109.7% annually.

SEHK:6639 Earnings and Revenue Growth as at Jun 2024
SEHK:6639 Earnings and Revenue Growth as at Jun 2024

Key Takeaways

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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.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:2315 SEHK:2373 and SEHK:6639.

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