Today, I will be analyzing Public Joint Stock Company HALS-Development’s (MISX:HALS) recent ownership structure, an important but not-so-popular subject among individual investors. When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. Since the same amount of capital coming from an activist institution and a passive mutual fund has different implications on corporate governance, it is a useful exercise to deconstruct HALS’s shareholder registry.

View our latest analysis for HALS-Development

General Public Ownership

With 1.84% ownership, the general public are a relatively smaller ownership class in HALS. This size of ownership, while considerably small for a public company, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

Another important group of owners for potential investors in HALS are other public companies that hold a stake of 98.16% in HALS. These are the companies that are mainly invested due to their strategic interests or incentivized by reaping capital gains on investments. An ownership of this size indicates a strong financial backing and has the potential to influence HALS’s business strategy. Thus, investors should dig deeper into HALS’s business relations with these companies and how it can affect shareholder returns in the long-term.

Next Steps:

A large shareholding of HALS by the general public could mean higher market liquidity to buy and sell shares for retail investors, and also the potential to have more influence over company policies as a collective. However, ownership structure should not be the only focus of your research when constructing an investment thesis around HALS. Rather, you should be examining fundamental factors such as the intrinsic valuation, which is a key driver of HALS-Development’s share price. I highly recommend you to complete your research by taking a look at the following:

• 1. Financial Health: Is HALS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

• 2. Past Track Record: Has HALS been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of HALS’s historicals for more clarity.

• 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.