Stock Analysis

Following recent decline, L.K. Technology Holdings Limited's (HKG:558) top shareholder Top Key Executive Siw Yin Chong sees holdings value drop by 7.2%

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Key Insights

A look at the shareholders of L.K. Technology Holdings Limited (HKG:558) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 62% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 7.2%.

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

View our latest analysis for L.K. Technology Holdings

SEHK:558 Ownership Breakdown March 15th 2023

What Does The Institutional Ownership Tell Us About L.K. Technology 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.

We can see that L.K. Technology Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 L.K. Technology Holdings' earnings history below. Of course, the future is what really matters.

SEHK:558 Earnings and Revenue Growth March 15th 2023

We note that hedge funds don't have a meaningful investment in L.K. Technology Holdings. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In L.K. Technology Holdings' case, its Top Key Executive, Siw Yin Chong, is the largest shareholder, holding 62% of shares outstanding. With 4.2% and 2.4% of the shares outstanding respectively, CloudAlpha Capital Management Limited and Norges Bank Investment Management are the second and third largest shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of L.K. Technology Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the L.K. Technology Holdings Limited stock. This gives them a lot of power. Insiders own HK$7.5b worth of shares in the HK$12b company. That's extraordinary! 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 26% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 2 warning signs we've spotted with L.K. Technology Holdings (including 1 which is a bit unpleasant) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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