Individual investors own 23% of CIFI Ever Sunshine Services Group Limited (HKG:1995) shares but public companies control 23% of the company

By
Simply Wall St
Published
March 19, 2022
SEHK:1995
Source: Shutterstock

Every investor in CIFI Ever Sunshine Services Group Limited (HKG:1995) should be aware of the most powerful shareholder groups. With 23% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 23% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about CIFI Ever Sunshine Services Group.

Check out our latest analysis for CIFI Ever Sunshine Services Group

ownership-breakdown
SEHK:1995 Ownership Breakdown March 19th 2022

What Does The Institutional Ownership Tell Us About CIFI Ever Sunshine Services Group?

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.

We can see that CIFI Ever Sunshine Services Group does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CIFI Ever Sunshine Services Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:1995 Earnings and Revenue Growth March 19th 2022

We note that hedge funds don't have a meaningful investment in CIFI Ever Sunshine Services Group. Our data shows that CIFI Holdings (Group) Co. Ltd. is the largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 8.8% of the stock. Feng Lin, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. Furthermore, CEO Hongbin Zhou is the owner of 2.4% of the company's shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CIFI Ever Sunshine Services Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of CIFI Ever Sunshine Services Group Limited. It has a market capitalization of just HK$19b, and insiders have HK$2.2b worth of shares in their own names. That's quite significant. 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 23% stake in CIFI Ever Sunshine 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.

Private Company Ownership

Our data indicates that Private Companies hold 21%, of the company's shares. 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.

Public Company Ownership

It appears to us that public companies own 23% of CIFI Ever Sunshine Services 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with CIFI Ever Sunshine Services Group , 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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