What Kind Of Investors Own Most Of Sunwah Kingsway Capital Holdings Limited (HKG:188)?

If you want to know who really controls Sunwah Kingsway Capital Holdings Limited (HKG:188), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Sunwah Kingsway Capital Holdings is not a large company by global standards. It has a market capitalization of HK$2.8b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions don't own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Sunwah Kingsway Capital Holdings.

See our latest analysis for Sunwah Kingsway Capital Holdings

What Does The Lack Of Institutional Ownership Tell Us About Sunwah Kingsway Capital 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. Alternatively, there might be something about the company that has kept institutional investors away. Sunwah Kingsway Capital Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Sunwah Kingsway Capital Holdings is not owned by hedge funds. Sunwah International Limited is currently the company's largest shareholder with 26% of shares outstanding. Koon Shum Choi is the second largest shareholder owning 25% of common stock, and Koon Ming Choi holds about 5.5% of the company stock. Koon Ming Choi, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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

Insider Ownership Of Sunwah Kingsway Capital 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. 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.

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 a reasonable proportion of Sunwah Kingsway Capital Holdings Limited. It has a market capitalization of just HK$2.8b, and insiders have HK$848m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 34% ownership, the general public have some degree of sway over Sunwah Kingsway Capital Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 5.0%, private equity firms could influence the Sunwah Kingsway Capital Holdings board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 4.1%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 26% of the Sunwah Kingsway Capital Holdings shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sunwah Kingsway Capital Holdings better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Sunwah Kingsway Capital Holdings (including 1 which is shouldn't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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