As global markets navigate a landscape of economic shifts and interest rate adjustments, the Hong Kong market has shown resilience amid broader uncertainty. With the Hang Seng Index experiencing slight declines, investors are increasingly on the lookout for undervalued opportunities that could offer strong potential. In this context, identifying stocks with solid fundamentals and growth prospects becomes crucial. Here are three undiscovered gems in Hong Kong that may warrant closer attention this September 2024.
Top 10 Undiscovered Gems With Strong Fundamentals In Hong Kong
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Lion Rock Group | 16.91% | 14.33% | 10.15% | ★★★★★★ |
| E-Commodities Holdings | 21.33% | 9.04% | 28.46% | ★★★★★★ |
| 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% | ★★★★★☆ |
| HBM Holdings | 52.89% | 66.59% | 31.70% | ★★★★★☆ |
| Time Interconnect Technology | 212.50% | 27.21% | 15.01% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
IVD Medical Holding (SEHK:1931)
Simply Wall St Value Rating: ★★★★★☆
Overview: IVD Medical Holding Limited, an investment holding company with a market cap of HK$2.81 billion, distributes in vitro diagnostic (IVD) products in Mainland China and internationally.
Operations: IVD Medical Holding generates revenue primarily from its distribution business (CN¥2.86 billion), followed by after-sales services (CN¥196.47 million) and self-branded products (CN¥9.05 million).
IVD Medical Holding, a small cap in the healthcare sector, reported sales of CNY 1.35 billion for the half year ending June 2024, slightly lower than CNY 1.38 billion a year ago. Despite this, net income rose to CNY 125.29 million from CNY 103.01 million previously. The company’s earnings grew by 12.3% over the past year and are trading at a significant discount of approximately 66% below estimated fair value while having their debt well-covered by EBIT at a ratio of 20.8x.
- Navigate through the intricacies of IVD Medical Holding with our comprehensive health report here.
Gain insights into IVD Medical Holding's past trends and performance with our Past report.
Gome Finance Technology (SEHK:628)
Simply Wall St Value Rating: ★★★★★★
Overview: Gome Finance Technology Co., Ltd. is an investment holding company that offers a range of financial services in the People's Republic of China, with a market cap of HK$2.24 billion.
Operations: Gome Finance Technology generates revenue primarily from its commercial factoring business (CN¥81.20 million) and other financing services (CN¥19.16 million). The company has a market cap of HK$2.24 billion.
Gome Finance Technology has shown a significant turnaround, reporting a net income of CNY 25.28 million for the first half of 2024 compared to a net loss of CNY 2.23 million last year. The company is now debt-free, with its debt-to-equity ratio dropping from 46.2% five years ago to zero currently. Despite high volatility in share price over the past three months, Gome's earnings quality remains robust and it has become profitable this year, outperforming industry growth rates.
- Get an in-depth perspective on Gome Finance Technology's performance by reading our health report here.
Assess Gome Finance Technology's past performance with our detailed historical performance reports.
AGTech Holdings (SEHK:8279)
Simply Wall St Value Rating: ★★★★★★
Overview: AGTech Holdings Limited operates as an integrated technology and services company in the People’s Republic of China and Macau, with a market cap of HK$2.50 billion.
Operations: AGTech Holdings generates revenue primarily from Lottery Operations (HK$248.76 million) and Electronic Payment and Related Services (HK$364.50 million).
AGTech Holdings, a smaller player in the Hong Kong market, recently reported sales of HK$766.58 million for the fifteen months ending March 31, 2024. The net income stood at HK$31.86 million with basic earnings per share from continuing operations at HK$0.00279. Notably, AGTech has no debt and became profitable this year after reducing its debt to equity ratio from 13.8% five years ago to zero now. The company also approved amendments to its bye-laws and saw Mr. Zou Liang retire as a non-executive director recently.
Make It Happen
- Dive into all 172 of the SEHK Undiscovered Gems With Strong Fundamentals we have identified here.
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Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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.
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