Stock Analysis

Retail investors in Singamas Container Holdings Limited (HKG:716) are its biggest bettors, and their bets paid off as stock gained 12% last week

SEHK:716
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Key Insights

  • Significant control over Singamas Container Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 14 investors have a majority stake in the company with 50% ownership
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Singamas Container Holdings Limited (HKG:716), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors collectively scored the highest last week as the company hit HK$1.4b market cap following a 12% gain in the stock.

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

See our latest analysis for Singamas Container Holdings

ownership-breakdown
SEHK:716 Ownership Breakdown January 16th 2024

What Does The Institutional Ownership Tell Us About Singamas Container 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.

As you can see, institutional investors have a fair amount of stake in Singamas Container Holdings. 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 Singamas Container Holdings' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:716 Earnings and Revenue Growth January 16th 2024

Hedge funds don't have many shares in Singamas Container Holdings. Our data shows that Pacific International Lines (Private) Limited is the largest shareholder with 42% of shares outstanding. With 1.9% and 1.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Siong Seng Teo are the second and third largest shareholders. Siong Seng Teo, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

A deeper look at our ownership data shows that the top 14 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Singamas Container Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own some shares in Singamas Container Holdings Limited. As individuals, the insiders collectively own HK$24m worth of the HK$1.4b company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 50% of Singamas Container Holdings shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 42%, of the Singamas Container Holdings 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Singamas Container Holdings is showing 2 warning signs in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Singamas Container Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.