Tsim Sha Tsui Properties Limited (HKG:247) insiders have significant skin in the game with 66% ownership

Key Insights

• Significant insider control over Tsim Sha Tsui Properties implies vested interests in company growth
• 66% of the company is held by a single shareholder (Chee Siong Ng)
• 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 Tsim Sha Tsui Properties Limited (HKG:247), then you'll have to look at the makeup of its share registry. With 66% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of Tsim Sha Tsui Properties regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Tsim Sha Tsui Properties.

Check out our latest analysis for Tsim Sha Tsui Properties

What Does The Lack Of Institutional Ownership Tell Us About Tsim Sha Tsui Properties?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. 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. Tsim Sha Tsui Properties might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Tsim Sha Tsui Properties is not owned by hedge funds. Our data suggests that Chee Siong Ng, who is also the company's Top Key Executive, holds the most number of shares at 66%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 5.7% of the shares outstanding, followed by an ownership of 0.1% by the third-largest shareholder.

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 Tsim Sha Tsui Properties

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

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.

It seems that insiders own more than half the Tsim Sha Tsui Properties Limited stock. This gives them a lot of power. That means insiders have a very meaningful HK$25b stake in this HK$38b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tsim Sha Tsui Properties. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 5.7%, of the Tsim Sha Tsui Properties stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Tsim Sha Tsui Properties is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free 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.

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.