Haichang Ocean Park Holdings Ltd.'s (HKG:2255) most bullish insider, Senior Key Executive Cheng Qu must be pleased with the recent 33% gain

Key Insights

• Haichang Ocean Park Holdings' significant insider ownership suggests inherent interests in company's expansion
• 57% of the business is held by the top 2 shareholders
• 23% of Haichang Ocean Park Holdings is held by Institutions

Every investor in Haichang Ocean Park Holdings Ltd. (HKG:2255) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit HK$5.5b market cap following a 33% gain in the stock.

Let's delve deeper into each type of owner of Haichang Ocean Park Holdings, beginning with the chart below.

View our latest analysis for Haichang Ocean Park Holdings

What Does The Institutional Ownership Tell Us About Haichang Ocean Park Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Haichang Ocean Park Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Haichang Ocean Park Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Haichang Ocean Park Holdings is not owned by hedge funds. Our data suggests that Cheng Qu, who is also the company's Senior Key Executive, holds the most number of shares at 48%. 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 9.7% and 4.9% of the shares outstanding respectively, ORIX Asset Management Corporation and ORIX Asia Capital Limited are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Haichang Ocean Park Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Haichang Ocean Park Holdings Ltd.. It has a market capitalization of just HK$5.5b, and insiders have HK$2.6b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% 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:

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Haichang Ocean Park Holdings you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.