Here's What Sunningdale Tech Ltd's (SGX:BHQ) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
August 31, 2020
SGX:BHQ

If you want to know who really controls Sunningdale Tech Ltd (SGX:BHQ), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.

Sunningdale Tech is a smaller company with a market capitalization of S$226m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Sunningdale Tech.

View our latest analysis for Sunningdale Tech

ownership-breakdown
SGX:BHQ Ownership Breakdown September 1st 2020

What Does The Institutional Ownership Tell Us About Sunningdale Tech?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Sunningdale Tech already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Sunningdale Tech, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SGX:BHQ Earnings and Revenue Growth September 1st 2020

Sunningdale Tech is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Boon Hwee Koh with 16% of shares outstanding. The second and third largest shareholders are Seng Hui Goi and Kong Siang Group Holdings Pte. Ltd., with an equal amount of shares to their name at 8.0%. Furthermore, CEO Boo Hor Khoo is the owner of 1.1% of the company's shares.

On studying our ownership data, we found that 22 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Sunningdale Tech

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.

It seems insiders own a significant proportion of Sunningdale Tech Ltd. Insiders have a S$62m stake in this S$226m business. 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, mostly retail investors, hold a substantial 57% stake in Sunningdale Tech, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Company Ownership

Our data indicates that Private Companies hold 8.0%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sunningdale Tech better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Sunningdale Tech you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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. 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.
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