What Type Of Shareholder Owns Kidsland International Holdings Limited’s (HKG:2122)?

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The big shareholder groups in Kidsland International Holdings Limited (HKG:2122) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

Kidsland International Holdings is a smaller company with a market capitalization of HK$280m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutional investors have not yet purchased much of the company. Let’s take a closer look to see what the different types of shareholder can tell us about 2122.

View our latest analysis for Kidsland International Holdings

SEHK:2122 Ownership Summary December 5th 18
SEHK:2122 Ownership Summary December 5th 18

What Does The Institutional Ownership Tell Us About Kidsland International 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 Kidsland International 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. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it’s the future that counts most.

SEHK:2122 Income Statement Export December 5th 18
SEHK:2122 Income Statement Export December 5th 18

Kidsland International Holdings 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 Kidsland International Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of Kidsland International Holdings Limited. This means they can collectively make decisions for the company. So they have a HK$181m stake in this HK$280m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.