Insiders with their considerable ownership were the key benefactors as Sinolink Worldwide Holdings Limited (HKG:1168) touches HK$886m market cap

Key Insights

• Sinolink Worldwide Holdings' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Yaping Ou with a 52% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls Sinolink Worldwide Holdings Limited (HKG:1168), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit HK$886m market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Sinolink Worldwide Holdings.

Check out our latest analysis for Sinolink Worldwide Holdings

What Does The Lack Of Institutional Ownership Tell Us About Sinolink Worldwide Holdings?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. Sinolink Worldwide Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Sinolink Worldwide Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yaping Ou with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. With 0.7% and 0.3% of the shares outstanding respectively, Dimensional Fund Advisors LP and Yui Man Tang are the second and third largest shareholders. Yui Man Tang, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Sinolink Worldwide 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 information suggests that insiders own more than half of Sinolink Worldwide Holdings Limited. This gives them effective control of the company. So they have a HK$462m stake in this HK$886m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sinolink Worldwide Holdings. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

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.

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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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.