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Discovering Hong Kong's Hidden Stock Gems In August 2024
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As global markets react to anticipated rate cuts and small-cap stocks outperform their larger counterparts, the Hong Kong market presents unique opportunities for discerning investors. In this climate of cautious optimism, identifying undervalued stocks with strong fundamentals and growth potential becomes crucial for capitalizing on emerging trends.

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% ★★★★★★
COSCO SHIPPING International (Hong Kong) NA -3.84% 16.33% ★★★★★★
PW Medtech Group NA 17.93% -2.70% ★★★★★★
Tianyun International Holdings 10.09% -5.59% -9.92% ★★★★★★
JiaXing Gas Group 17.72% 26.04% 22.07% ★★★★★☆
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 172 stocks from our SEHK Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Xin Point Holdings (SEHK:1571)

Simply Wall St Value Rating: ★★★★★☆

Overview: Xin Point Holdings Limited is an investment holding company that manufactures and sells automotive and electronic components in China, North America, Europe, and internationally, with a market cap of HK$3.34 billion.

Operations: Xin Point Holdings generates revenue primarily from the manufacture and sale of automotive and electronic components, totaling CN¥3.23 billion.

Xin Point Holdings, a small cap in the Auto Components industry, has shown impressive performance with earnings growth of 27.4% over the past year, outpacing the industry's -16.7%. Trading at 75.6% below its estimated fair value, it offers potential for value investors. Recent results reveal sales of CNY 1.65 billion and net income of CNY 322 million for H1 2024 compared to CNY 263 million a year ago. The company declared an interim dividend of HKD 0.2 per share payable on October 25, showcasing strong financial health and shareholder returns.

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

Bank of Tianjin (SEHK:1578)

Simply Wall St Value Rating: ★★★★★★

Overview: Bank of Tianjin Co., Ltd. provides a range of banking and related financial services primarily in the People’s Republic of China, with a market cap of HK$10.62 billion.

Operations: Bank of Tianjin generates revenue through various banking and financial services primarily in China. The company's net profit margin is a key metric to consider when evaluating its financial performance.

Bank of Tianjin, with total assets of CN¥871.1B and equity of CN¥66.5B, reported earnings growth of 22.5% over the past year, outpacing the industry average. Total deposits stand at CN¥551.8B while loans are at CN¥463.2B, supported by a net interest margin of 1.7%. The bank has an appropriate bad loan allowance at 1.7% and recently completed a fixed-income offering worth CNY10 billion due in 2027 with a coupon rate of 2.12%.

SEHK:1578 Debt to Equity as at Aug 2024
SEHK:1578 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., an investment holding company, provides shipping services in the People's Republic of China and internationally with a market cap of HK$6.26 billion.

Operations: COSCO SHIPPING International (Hong Kong) Co., Ltd. generates revenue primarily from Marine Equipment and Spare Parts (HK$1.73 billion), Coatings (HK$992.94 million), and General Trading (HK$478.19 million). The company also earns from Insurance Brokerage (HK$175.51 million) and Ship Trading Agency services (HK$99.97 million).

COSCO SHIPPING International (Hong Kong) recently announced an interim dividend of HK$0.265 per share for the six months ending June 2024, with a record date of September 12 and payment on September 25. The company reported half-year sales of HK$1.75 billion, up from HK$1.62 billion last year, and net income rose to HK$388 million from HK$336 million. Basic earnings per share increased to HKD 0.2647 from HKD 0.2269 a year ago, reflecting solid financial health and growth potential within its sector.

SEHK:517 Earnings and Revenue Growth as at Aug 2024
SEHK:517 Earnings and Revenue Growth 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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