C&D Property Management Group Co. Limited's (HKG:2156) market cap surged HK$398m last week, public companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by public companies in C&D Property Management Group indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Xiamen C&D Inc. with a 59% stake
• Institutions own 19% of C&D Property Management Group

Every investor in C&D Property Management Group Co. Limited (HKG:2156) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 8.4% gain.

In the chart below, we zoom in on the different ownership groups of C&D Property Management Group.

View our latest analysis for C&D Property Management Group

What Does The Institutional Ownership Tell Us About C&D Property Management Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that C&D Property Management Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see C&D Property Management Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in C&D Property Management Group. Xiamen C&D Inc. is currently the company's largest shareholder with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. Cederberg Capital Limited is the second largest shareholder owning 6.7% of common stock, and OLP Capital Management Limited holds about 4.7% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of C&D Property Management Group

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.

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 data suggests that insiders own under 1% of C&D Property Management Group Co. Limited in their own names. It appears that the board holds about HK$16m worth of stock. This compares to a market capitalization of HK$5.1b. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in C&D Property Management Group. 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.

Public Company Ownership

It appears to us that public companies own 59% of C&D Property Management Group. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. To that end, you should be aware of the 1 warning sign we've spotted with C&D Property Management Group .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.