AK Medical Holdings Limited's (HKG:1789) most bullish insider, CEO Zhijiang Li must be pleased with the recent 6.4% gain

Key Insights

• AK Medical Holdings' significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 50% of the company
• 17% of AK Medical Holdings is held by Institutions

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To get a sense of who is truly in control of AK Medical Holdings Limited (HKG:1789), it is important to understand the ownership structure of the business. With 51% stake, individual insiders possess the maximum shares in the company. 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$6.9b market cap following a 6.4% gain in the stock.

In the chart below, we zoom in on the different ownership groups of AK Medical Holdings.

See our latest analysis for AK Medical Holdings

What Does The Institutional Ownership Tell Us About AK Medical 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.

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

We note that hedge funds don't have a meaningful investment in AK Medical Holdings. The company's CEO Zhijiang Li is the largest shareholder with 45% of shares outstanding. With 5.2% and 4.7% of the shares outstanding respectively, Chaoyang Zhang and Hillhouse Investment Management, Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Chaoyang Zhang is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

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 50% stake.

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

Insider Ownership Of AK Medical 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.

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 the majority of AK Medical Holdings Limited. This means they can collectively make decisions for the company. So they have a HK$3.5b stake in this HK$6.9b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 32% 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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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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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.