Do Institutions Own Contel Technology Company Limited (HKG:1912) Shares?

In This Article:

If you want to know who really controls Contel Technology Company Limited (HKG:1912), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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$1.1b, Contel Technology 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 institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about 1912.

View our latest analysis for Contel Technology

SEHK:1912 Ownership Summary, October 16th 2019
SEHK:1912 Ownership Summary, October 16th 2019

What Does The Lack Of Institutional Ownership Tell Us About Contel Technology?

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. Contel Technology might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

SEHK:1912 Income Statement, October 16th 2019
SEHK:1912 Income Statement, October 16th 2019

Contel Technology is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Contel Technology

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

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 information suggests that insiders own more than half of Contel Technology Company Limited. This gives them effective control of the company. So they have a HK$852m stake in this HK$1.1b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.