Cheuk Nang (Holdings) Limited's (HKG:131) most bullish insider is CEO Sze-Tsung Chao, and their holdings value went up by 11% last week

Key Insights

• Cheuk Nang (Holdings)'s significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Sze-Tsung Chao with a 74% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Cheuk Nang (Holdings) Limited (HKG:131), then you'll have to look at the makeup of its share registry. With 75% 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.

Clearly, insiders benefitted the most after the company's market cap rose by HK$111m last week.

In the chart below, we zoom in on the different ownership groups of Cheuk Nang (Holdings).

View our latest analysis for Cheuk Nang (Holdings)

What Does The Lack Of Institutional Ownership Tell Us About Cheuk Nang (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 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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Cheuk Nang (Holdings), for yourself, below.

Cheuk Nang (Holdings) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Sze-Tsung Chao with 74% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Dimensional Fund Advisors LP is the second largest shareholder owning 0.9% of common stock, and Ding-Yue Lee holds about 0.3% of the company stock. Interestingly, the third-largest shareholder, Ding-Yue Lee is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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

Insider Ownership Of Cheuk Nang (Holdings)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems that insiders own more than half the Cheuk Nang (Holdings) Limited stock. This gives them a lot of power. So they have a HK$829m stake in this HK$1.1b 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, who are usually individual investors, hold a 24% stake in Cheuk Nang (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. For example, we've discovered 2 warning signs for Cheuk Nang (Holdings) (1 shouldn't be ignored!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.