Stock Analysis

C C Land Holdings Limited's (HKG:1224) largest shareholder, Top Key Executive Chung Kiu Cheung sees holdings value fall by 9.8% following recent drop

SEHK:1224
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Key Insights

  • C C Land Holdings' significant insider ownership suggests inherent interests in company's expansion
  • Chung Kiu Cheung owns 74% of the company
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of C C Land Holdings Limited (HKG:1224) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 74% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to HK$4.3b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of C C Land Holdings, beginning with the chart below.

View our latest analysis for C C Land Holdings

ownership-breakdown
SEHK:1224 Ownership Breakdown April 21st 2024

What Does The Institutional Ownership Tell Us About C C Land 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.

Institutions have a very small stake in C C Land Holdings. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
SEHK:1224 Earnings and Revenue Growth April 21st 2024

C C Land Holdings is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In C C Land Holdings' case, its Top Key Executive, Chung Kiu Cheung, is the largest shareholder, holding 74% of shares outstanding. In comparison, the second and third largest shareholders hold about 1.6% and 0.01% of the stock. Interestingly, the third-largest shareholder, How Mun Lam is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

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

Insider Ownership Of C C Land 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.

It seems that insiders own more than half the C C Land Holdings Limited stock. This gives them a lot of power. So they have a HK$3.2b stake in this HK$4.3b 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

The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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. To that end, you should be aware of the 2 warning signs we've spotted with C C Land Holdings .

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.