Stock Analysis

Kingkey Financial International (Holdings) Limited's (HKG:1468) most bullish insider, Senior Key Executive Jiajun Chen must be pleased with the recent 6.9% gain

Published
SEHK:1468

Key Insights

  • Significant insider control over Kingkey Financial International (Holdings) implies vested interests in company growth
  • A total of 2 investors have a majority stake in the company with 56% ownership
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Kingkey Financial International (Holdings) Limited (HKG:1468) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 44% 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, insiders scored the highest last week as the company hit HK$7.1b market cap following a 6.9% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Kingkey Financial International (Holdings).

View our latest analysis for Kingkey Financial International (Holdings)

SEHK:1468 Ownership Breakdown November 11th 2023

What Does The Lack Of Institutional Ownership Tell Us About Kingkey Financial International (Holdings)?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Kingkey Financial International (Holdings), for yourself, below.

SEHK:1468 Earnings and Revenue Growth November 11th 2023

Kingkey Financial International (Holdings) is not owned by hedge funds. From our data, we infer that the largest shareholder is Jiajun Chen (who also holds the title of Senior Key Executive) with 44% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Great Return Group Limited is the second largest shareholder owning 12% of common stock, and The Vanguard Group, Inc. holds about 0.6% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Kingkey Financial International (Holdings)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Kingkey Financial International (Holdings) Limited. Insiders have a HK$3.1b stake in this HK$7.1b business. 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, who are usually individual investors, hold a 43% stake in Kingkey Financial International (Holdings). 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 12%, of the Kingkey Financial International (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:

It's always worth thinking about the different groups who own shares in a company. But to understand Kingkey Financial International (Holdings) better, we need to consider many other factors. Take risks for example - Kingkey Financial International (Holdings) has 3 warning signs (and 1 which is significant) we think you should know about.

Of course this may not be the best stock to buy. So take a peek at this free 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 here to simplify it.

Discover if Kingkey Financial International (Holdings) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.