Spotlighting Three Undiscovered Gems In Hong Kong This September 2024
As global markets face heightened volatility and economic uncertainty, the Hong Kong market has shown resilience, making it an intriguing landscape for discerning investors. Despite broader concerns over economic slowdowns and fluctuating indices, Hong Kong’s small-cap sector offers unique opportunities for those seeking to uncover hidden gems. In this article, we spotlight three lesser-known stocks that exhibit strong fundamentals and potential growth in these challenging times.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
C&D Property Management Group | 1.32% | 37.15% | 41.55% | ★★★★★★ |
PW Medtech Group | 0.06% | 22.33% | -17.56% | ★★★★★★ |
COSCO SHIPPING International (Hong Kong) | NA | -3.84% | 16.33% | ★★★★★★ |
ManpowerGroup Greater China | NA | 14.56% | 1.58% | ★★★★★★ |
Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
Xin Point Holdings | 1.77% | 10.88% | 22.83% | ★★★★★☆ |
Chongqing Machinery & Electric | 28.07% | 8.82% | 11.12% | ★★★★★☆ |
HBM Holdings | 52.89% | 66.59% | 31.70% | ★★★★★☆ |
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.
Bank of Gansu
Simply Wall St Value Rating: ★★★★★★
Overview: Bank of Gansu Co., Ltd., along with its subsidiary Pingliang Jingning Chengji Rural Bank Co., Ltd., offers a range of banking services in the People’s Republic of China and has a market cap of approximately HK$4.07 billion.
Operations: Bank of Gansu generates revenue primarily from retail banking (CN¥2097.89 million) and corporate banking (CN¥1211.45 million), while its financial market operations result in a negative contribution of CN¥368.60 million.
Bank of Gansu, with total assets of CN¥422.2B and equity of CN¥33.6B, has a P/E ratio of 5.9x, below the Hong Kong market average. Total deposits stand at CN¥333.6B, and loans are CN¥228.0B, with a net interest margin of 1.5%. The bank's allowance for bad loans is sufficient at 1.9% of total loans while earnings growth over the past year (2.5%) lagged behind industry growth (3.2%).
Click here to discover the nuances of Bank of Gansu with our detailed analytical health report.
Review our historical performance report to gain insights into Bank of Gansu's's past performance.
YesAsia Holdings
Simply Wall St Value Rating: ★★★★★★
Overview: YesAsia Holdings Limited, with a market cap of HK$2.63 billion, is an investment holding company involved in the procurement, sale, and trading of Asian fashion and lifestyle, beauty, cosmetics, accessories, and entertainment products.
Operations: The company generates revenue primarily from the sale of fashion, lifestyle, and beauty products amounting to $270.65 million, with a smaller contribution from entertainment products at $2.56 million.
YesAsia Holdings has shown impressive growth, with half-year sales reaching US$163.35 million compared to US$90.66 million last year. Net income surged to US$11.11 million from US$1.56 million, driven by increased beauty product sales via YesStyle Platforms and AsianBeautyWholesale. The company repurchased shares recently, reflecting confidence in its future prospects. Despite a highly volatile share price over the past three months, YesAsia's earnings are forecasted to grow 48% annually, making it a noteworthy player in the Hong Kong market.
Vtech Holdings
Simply Wall St Value Rating: ★★★★★★
Overview: Vtech Holdings Limited, together with its subsidiaries, designs, manufactures, and distributes electronic products in Hong Kong, North America, Europe, the Asia Pacific, and internationally with a market cap of HK$12.94 billion.
Operations: Vtech Holdings generates revenue primarily from the design, manufacture, and distribution of consumer electronic products, amounting to $2.15 billion.
Trading at 33% below its estimated fair value, Vtech Holdings is debt-free and has demonstrated high-quality earnings. Over the past year, its earnings grew by 11.7%, outpacing the Communications industry’s -14.5%. Despite a 4.4% annual decline in earnings over five years, it remains profitable with positive free cash flow. The company recently approved a final dividend of US$0.48 per share for FY2024, highlighting shareholder returns amidst steady performance improvements.
Dive into the specifics of Vtech Holdings here with our thorough health report.
Examine Vtech Holdings' past performance report to understand how it has performed in the past.
Make It Happen
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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:2139 SEHK:2209 and SEHK:303.
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