CSI Properties Limited's (HKG:497): Top Key Executive Cho Yee Chung is the most bullish insider, and their stock value gained 23% last week

Key Insights

• Significant insider control over CSI Properties implies vested interests in company growth
• The largest shareholder of the company is Cho Yee Chung with a 56% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of CSI Properties Limited (HKG:497) can tell us which group is most powerful. With 56% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit HK$847m market cap following a 23% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about CSI Properties.

Check out our latest analysis for CSI Properties

What Does The Institutional Ownership Tell Us About CSI Properties?

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.

Less than 5% of CSI Properties is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

CSI Properties 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 CSI Properties' case, its Top Key Executive, Cho Yee Chung, is the largest shareholder, holding 56% of shares outstanding. The second and third largest shareholders are Value Partners Hong Kong Limited and Dimensional Fund Advisors LP, with an equal amount of shares to their name at 2.1%.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of CSI Properties

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.

It seems that insiders own more than half the CSI Properties Limited stock. This gives them a lot of power. Given it has a market cap of HK$847m, that means they have HK$479m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 39% stake in CSI Properties. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with CSI Properties , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.