In the dynamic Hong Kong stock market, investors are increasingly focusing on companies with high insider ownership as a sign of confidence and alignment with shareholder interests. This article explores three growth companies listed on the Stock Exchange of Hong Kong (SEHK) that exhibit significant insider ownership and have the potential for up to 30% earnings growth.
1. **BYD (SEHK:1211)**
BYD, a leading player in the automobiles and batteries sectors, has a market cap of HK$753.40 billion and an insider ownership of 30.1%. The company's strong financial performance is reflected in its recent unaudited sales of 373,083 units in August 2024, up from 274,386 units a year ago. BYD's strategic partnership with Uber to deploy electric vehicles globally further enhances its growth prospects.
2. **Newborn Town (SEHK:9911)**
Newborn Town, an investment holding company operating in the social networking business, has a market cap of HK$2.95 billion and an insider ownership of 35.3%. The company's revenue is forecast to grow at 12.6% per year, outpacing the Hong Kong market's 7.3%. Recent earnings for the half-year ended June 30, 2024, showed sales of CNY 2.27 billion and net income of CNY 224.68 million, both up from last year.
3. **Akeso (SEHK:9926)**
Akeso, a biopharmaceutical company, has a market cap of HK$50.22 billion and an insider ownership of 20.5%. The company is forecast to grow earnings by 54.67% annually and become profitable within three years. Despite recent shareholder dilution and a significant revenue drop, Akeso's innovative drug ivonescimab has shown superior efficacy in clinical trials, enhancing its growth prospects.
In conclusion, these three SEHK-listed companies – BYD, Newborn Town, and Akeso – demonstrate strong insider ownership and promising growth prospects. Their earnings growth forecasts, coupled with robust business models and strategic decision-making, make them attractive investment opportunities in the dynamic Hong Kong stock market.
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