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Undiscovered Gems in Hong Kong for August 2024
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As global markets react to anticipated interest rate cuts and economic indicators show mixed signals, the Hong Kong market presents a unique landscape for investors seeking opportunities in lesser-known stocks. Small-cap companies, often overlooked, can offer significant potential when market conditions align favorably with their growth prospects.

Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
S.A.S. Dragon Holdings 60.96% 4.62% 10.02% ★★★★★★
E-Commodities Holdings 21.33% 9.04% 28.46% ★★★★★★
PW Medtech Group NA 17.93% -2.70% ★★★★★★
Tianyun International Holdings 10.09% -5.59% -9.92% ★★★★★★
Xin Point Holdings 1.77% 10.88% 22.83% ★★★★★☆
Hung Hing Printing Group 3.97% -2.51% 33.57% ★★★★★☆
Chongqing Machinery & Electric 28.07% 8.82% 11.12% ★★★★★☆
Changjiu Holdings 14.09% 12.87% -4.74% ★★★★★☆
Time Interconnect Technology 212.50% 27.21% 15.01% ★★★★☆☆
Pizu Group Holdings 48.34% -4.53% -19.78% ★★★★☆☆

Click here to see the full list of 176 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Xin Point Holdings (SEHK:1571)

Simply Wall St Value Rating: ★★★★★☆

Overview: Xin Point Holdings Limited, with a market cap of HK$3.26 billion, manufactures and sells automotive and electronic components in China, North America, Europe, and internationally.

Operations: Xin Point Holdings generates revenue primarily from the sale of automotive and electronic components across various international markets. The company's financial performance includes a notable net profit margin trend, reflecting its cost management and pricing strategies.

Xin Point Holdings has shown impressive earnings growth of 27.4% over the past year, far outpacing the Auto Components industry's -16.7%. Trading at 76.2% below its estimated fair value, this company appears undervalued. Recent financials reveal net income for the first half of 2024 at CNY 322.16 million, up from CNY 263.67 million a year ago, with basic earnings per share rising to CNY 0.321 from CNY 0.2635 last year.

SEHK:1571 Earnings and Revenue Growth as at Aug 2024
SEHK:1571 Earnings and Revenue Growth as at Aug 2024

ZONQING Environmental (SEHK:1855)

Simply Wall St Value Rating: ★★★★★☆

Overview: ZONQING Environmental Limited, with a market cap of HK$6.96 billion, offers construction and maintenance services for landscaping, ecological restoration, and public work projects in the People’s Republic of China through its subsidiaries.

Operations: ZONQING Environmental Limited generates revenue primarily from construction and maintenance services for landscaping, ecological restoration, and public work projects in China. The company has a market cap of HK$6.96 billion.

ZONQING Environmental reported earnings for the first half of 2024, showing sales of CNY 775.65 million, down from CNY 909.82 million last year. Net income was CNY 34.26 million compared to CNY 37.1 million previously, with basic and diluted EPS both at CNY 0.12 versus CNY 0.13 a year ago. The company approved a final dividend of RMB 0.071 per share at its AGM in June, reflecting steady shareholder returns amidst fluctuating performance figures.

SEHK:1855 Debt to Equity as at Aug 2024
SEHK:1855 Debt to Equity as at Aug 2024

COSCO SHIPPING International (Hong Kong) (SEHK:517)

Simply Wall St Value Rating: ★★★★★★

Overview: COSCO SHIPPING International (Hong Kong) Co., Ltd. is an investment holding company that offers shipping services both within the People's Republic of China and internationally, with a market cap of HK$5.85 billion.

Operations: COSCO SHIPPING International (Hong Kong) Co., Ltd. generates revenue from its shipping services in the People's Republic of China and internationally. The company has a market cap of HK$5.85 billion.

COSCO SHIPPING International (Hong Kong) reported strong earnings growth of 24.8% over the past year, surpassing the Infrastructure industry average of 9.3%. The company has no debt compared to a debt-to-equity ratio of 0.8 five years ago, indicating robust financial health. Recent interim results show sales increased to HKD 1.75 billion from HKD 1.62 billion last year, with net income rising to HKD 388 million from HKD 336 million previously.

SEHK:517 Debt to Equity as at Aug 2024
SEHK:517 Debt to Equity as at Aug 2024

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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.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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