As global markets experience fluctuations, with the Hang Seng Index recently seeing a notable decline, investors are increasingly turning their attention to small-cap stocks in Hong Kong for potential opportunities amidst broader market volatility. In this dynamic environment, identifying promising small-cap companies requires careful consideration of their growth potential and resilience against economic shifts.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| PW Medtech Group | 0.06% | 22.33% | -17.56% | ★★★★★★ |
| C&D Property Management Group | 1.32% | 37.15% | 41.55% | ★★★★★★ |
| ManpowerGroup Greater China | NA | 14.56% | 1.58% | ★★★★★★ |
| Sundart Holdings | 0.92% | -2.32% | -3.94% | ★★★★★★ |
| China Leon Inspection Holding | 8.55% | 21.36% | 22.77% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| Xin Point Holdings | 1.77% | 10.88% | 22.83% | ★★★★★☆ |
| S.A.S. Dragon Holdings | 60.96% | 4.62% | 10.02% | ★★★★★☆ |
| Lvji Technology Holdings | 3.06% | 4.56% | -1.87% | ★★★★★☆ |
| Chongqing Machinery & Electric | 27.77% | 8.82% | 11.12% | ★★★★☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Value Rating: ★★★★★☆
Overview: Kinetic Development Group Limited is an investment holding company involved in the extraction and sale of coal products in the People’s Republic of China, with a market capitalization of HK$13.66 billion.
Operations: Kinetic Development generates its revenue primarily from the extraction and sale of coal products in China. The company has a market capitalization of HK$13.66 billion, reflecting its significant presence in the industry.
Kinetic Development Group, a relatively small player in its sector, has shown impressive growth with earnings rising by 39% over the past year, outpacing the broader oil and gas industry. The company reported sales of CNY 2.53 billion for the first half of 2024, significantly higher than last year’s CNY 1.49 billion. Its debt to equity ratio improved from 28% to just under 13% over five years, indicating effective financial management and positioning it as a potential value opportunity trading well below estimated fair value.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Time Interconnect Technology Limited is an investment holding company that manufactures and sells cable assembly and networking cable products across various international markets, with a market cap of approximately HK$9.93 billion.
Operations: The company’s primary revenue streams include server and cable assembly segments, generating HK$2.57 billion and HK$2.57 billion respectively, alongside digital cable contributing HK$1.36 billion.
Time Interconnect Technology, a nimble player in the industry, reported a net income of HK$202.6 million for the first half of 2024, up from HK$151.11 million last year. Sales reached HK$2.67 billion compared to HK$2.63 billion previously, reflecting growth driven by medical equipment and data center sectors with improved margins. The company announced an interim dividend of HK$0.01 per share totaling HK$19.47 million, showcasing its commitment to returning value to shareholders while navigating market dynamics effectively.
Simply Wall St Value Rating: ★★★★★☆
Overview: Guoquan Food (Shanghai) Co., Ltd. is a Chinese company specializing in home meal products, with a market cap of HK$10.19 billion.
Operations: Guoquan Food generates revenue primarily through retail sales in grocery stores, amounting to CN¥5.99 billion.
Guoquan Food, a smaller player in the Hong Kong market, reported half-year sales of CNY 2.67 billion, slightly down from CNY 2.76 billion last year. Net income also saw a decrease to CNY 85.98 million from CNY 107.7 million previously, with basic earnings per share at CNY 0.0313 compared to last year’s CNY 0.0403. Despite recent volatility in share price and leadership changes, it remains undervalued by approximately 51%, offering potential investment value amidst industry challenges.
Summing It All Up
Ready To Venture Into Other Investment Styles?
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.
New: Manage All Your Stock Portfolios in One Place
We’ve created the ultimate portfolio companion for stock investors, and it’s free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
