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A look at the shareholders of Cheuk Nang (Holdings) Limited (HKG:131) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Cheuk Nang (Holdings) is not a large company by global standards. It has a market capitalization of HK$2.71b, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about 131.
See our latest analysis for Cheuk Nang (Holdings)
What Does The Institutional Ownership Tell Us About Cheuk Nang (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.
Since institutions own under 5% of Cheuk Nang (Holdings), many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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.
Hedge funds don’t have many shares in Cheuk Nang (Holdings). Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Cheuk Nang (Holdings)
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. 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.
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 that insiders own more than half the Cheuk Nang (Holdings) Limited stock. This gives them a lot of power. That means they own HK$1.97b worth of shares in the HK$2.71b company. That’s quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.