In This Article:
As the Hong Kong market continues to navigate global economic shifts, small-cap stocks have shown resilience and potential for growth. This article highlights Time Interconnect Technology and two other undiscovered gems that stand out due to their strong fundamentals and promising market positions amidst these dynamic conditions.
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 | 37.35% | 4.13% | 12.06% | ★★★★★★ |
| COSCO SHIPPING International (Hong Kong) | NA | -12.97% | 12.59% | ★★★★★★ |
| 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% | ★★★★★☆ |
| Xin Point Holdings | 2.03% | 9.80% | 15.04% | ★★★★★☆ |
| Hung Hing Printing Group | 3.97% | -2.51% | 33.57% | ★★★★★☆ |
| Changjiu Holdings | 14.09% | 12.87% | -4.74% | ★★★★★☆ |
| Mulsanne Group Holding | 186.88% | -12.02% | -43.54% | ★★★★☆☆ |
| Pizu Group Holdings | 48.34% | -4.53% | -19.78% | ★★★★☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Time Interconnect Technology
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 globally, with a market cap of approximately HK$7.26 billion.
Operations: The company generates revenue primarily from the sale of server products (HK$2.98 billion), digital cables (HK$1.18 billion), and cable assemblies (HK$2.31 billion).
Time Interconnect Technology, a small cap player in the cable assembly sector, has shown impressive earnings growth of 93.1% over the past year, outpacing the Electrical industry’s 11%. The company’s net debt to equity ratio stands at a high 184.9%, reflecting significant leverage. Despite this, interest payments are well covered by EBIT at 9x coverage. Recent guidance suggests a net profit increase of 30%-40% for H1 2024 due to higher revenue from medical equipment and data center cables.
First Tractor
Simply Wall St Value Rating: ★★★★★★
Overview: First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, with a market cap of HK$14.38 billion.
Operations: First Tractor generates revenue primarily through the sale of agricultural and power machinery. The company's net profit margin is 5.23%.