Desun Real Estate Investment Services Group Co., Ltd.'s (HKG:2270) market cap increased by HK$74m, insiders receive a 68% cut

Key Insights

• Desun Real Estate Investment Services Group's significant insider ownership suggests inherent interests in company's expansion
• 60% of the company is held by a single shareholder (Kang Zou)
• 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 Desun Real Estate Investment Services Group Co., Ltd. (HKG:2270), 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 68% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by HK$74m last week.

Let's delve deeper into each type of owner of Desun Real Estate Investment Services Group, beginning with the chart below.

Check out our latest analysis for Desun Real Estate Investment Services Group

What Does The Lack Of Institutional Ownership Tell Us About Desun Real Estate Investment Services Group?

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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Desun Real Estate Investment Services Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Desun Real Estate Investment Services Group is not owned by hedge funds. Kang Zou is currently the largest shareholder, with 60% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.6% and 2.8% of the shares outstanding respectively, Zhicheng Zhang and Jian Zou are the second and third largest shareholders. Zhicheng Zhang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Desun Real Estate Investment Services Group

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Desun Real Estate Investment Services Group Co., Ltd.. This gives them effective control of the company. So they have a HK$532m stake in this HK$788m 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 32% stake in Desun Real Estate Investment Services Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Desun Real Estate Investment Services Group better, we need to consider many other factors. For example, we've discovered 5 warning signs for Desun Real Estate Investment Services Group (3 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.

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.