What Kind Of Shareholder Owns Most Gold Peak Industries (Holdings) Limited (HKG:40) Stock?

If you want to know who really controls Gold Peak Industries (Holdings) Limited (HKG:40), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of HK$502m, Gold Peak Industries (Holdings) is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about Gold Peak Industries (Holdings).

See our latest analysis for Gold Peak Industries (Holdings)

What Does The Institutional Ownership Tell Us About Gold Peak Industries (Holdings)?

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 Gold Peak Industries (Holdings) does have institutional investors; and they hold 9.3% of the 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. 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 Gold Peak Industries (Holdings)'s earnings history, below. Of course, the future is what really matters.

Gold Peak Industries (Holdings) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Chung Wing Lo with 25% of shares outstanding. Ka Ng is the second largest shareholder with 21% of common stock, followed by HSBC Global Asset Management (UK) Limited, holding 7.7% of the stock.

Additionally, we found that 3 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Gold Peak Industries (Holdings)

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Gold Peak Industries (Holdings) Limited. It has a market capitalization of just HK$502m, and insiders have HK$234m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, with a 44% stake in the company, will not easily be ignored. 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 Gold Peak Industries (Holdings) better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Gold Peak Industries (Holdings) you should be aware of, and 1 of them is a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.