The recent 5.3% gain must have brightened Top Key Executive Ngan Ying Ngai's week, Lonking Holdings Limited's (HKG:3339) most bullish insider

Explore Lonking Holdings's Fair Values from the Community and select yours

Key Insights

• Insiders appear to have a vested interest in Lonking Holdings' growth, as seen by their sizeable ownership
• 56% of the company is held by a single shareholder (Ngan Ying Ngai)
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Lonking Holdings Limited (HKG:3339), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by HK$599m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Lonking Holdings.

Check out our latest analysis for Lonking Holdings

What Does The Institutional Ownership Tell Us About Lonking Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Lonking Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Lonking Holdings' earnings history below. Of course, the future is what really matters.

Lonking Holdings is not owned by hedge funds. Our data suggests that Ngan Ying Ngai, who is also the company's Top Key Executive, holds the most number of shares at 56%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 1.8% and 1.1% of the shares outstanding respectively, The Vanguard Group, Inc. and Pacific Capital Funds LLC are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Lonking 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Lonking Holdings Limited. This means they can collectively make decisions for the company. That means insiders have a very meaningful HK$6.7b stake in this HK$12b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Lonking Holdings that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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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.