The big shareholder groups in Hong Kong Shanghai Alliance Holdings Limited (HKG:1001) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.
Hong Kong Shanghai Alliance Holdings is a smaller company with a market capitalization of HK$263m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are not on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about Hong Kong Shanghai Alliance Holdings.
View our latest analysis for Hong Kong Shanghai Alliance Holdings
What Does The Lack Of Institutional Ownership Tell Us About Hong Kong Shanghai Alliance Holdings?
Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.
There are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Hong Kong Shanghai Alliance Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don’t have many shares in Hong Kong Shanghai Alliance Holdings. Huge Top Industrial Ltd. is currently the largest shareholder, with 30% of shares outstanding. Cho-Fai Yao is the second largest shareholder with 15% of common stock, followed by Koon Chi Wong, holding 6.0% of the stock. Cho-Fai Yao also happens to hold the title of Chief Executive Officer.
Additionally, we found that 3 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Hong Kong Shanghai Alliance Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Hong Kong Shanghai Alliance Holdings Limited. Insiders have a HK$56m stake in this HK$263m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
With a 49% ownership, the general public have some degree of sway over 1001. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 30%, of the 1001 stock. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Hong Kong Shanghai Alliance Holdings better, we need to consider many other factors. To that end, you should learn about the 6 warning signs we’ve spotted with Hong Kong Shanghai Alliance Holdings (including 2 which is are concerning) .
If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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