Sinolink Worldwide Holdings Limited's (HKG:1168) market cap increased by HK$892m, insiders receive a 52% cut

Key Insights

• Insiders appear to have a vested interest in Sinolink Worldwide Holdings' growth, as seen by their sizeable ownership
• 52% of the company is held by a single shareholder (Yaping Ou)
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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Every investor in Sinolink Worldwide Holdings Limited (HKG:1168) should be aware of the most powerful shareholder groups. With 52% 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 were the biggest beneficiaries of last week’s 47% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Sinolink Worldwide Holdings.

View our latest analysis for Sinolink Worldwide Holdings

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

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in 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. Our data shows that Yaping Ou is the largest shareholder with 52% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 0.4% and 0.3%, of the shares outstanding, respectively. 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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders own more than half of Sinolink Worldwide Holdings Limited. This gives them effective control of the company. That means they own HK$1.4b worth of shares in the HK$2.8b company. That's quite meaningful. 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, who are usually individual investors, hold a 48% stake in Sinolink Worldwide Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Sinolink Worldwide Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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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.