Key Insights
- Significant control over Shanghai Chicmax Cosmetic by employee share scheme implies that the general public has more power to influence management and governance-related decisions
- 83% of the business is held by the top 2 shareholders
- Recent purchases by insiders
If you want to know who really controls Shanghai Chicmax Cosmetic Co., Ltd. (HKG:2145), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are employee share scheme with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While insiders, who own 40% shares weren’t spared from last week’s HK$537m market cap drop, employee share scheme as a group suffered the maximum losses
In the chart below, we zoom in on the different ownership groups of Shanghai Chicmax Cosmetic.
Check out our latest analysis for Shanghai Chicmax Cosmetic
What Does The Lack Of Institutional Ownership Tell Us About Shanghai Chicmax Cosmetic?
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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Shanghai Chicmax Cosmetic, for yourself, below.
Hedge funds don't have many shares in Shanghai Chicmax Cosmetic. Shanghai Chicmax Cosmetic Co., Ltd, ESOP is currently the largest shareholder, with 42% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 40% and 0.2%, of the shares outstanding, respectively. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Executive Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 83% stake.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Shanghai Chicmax Cosmetic
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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.
It seems insiders own a significant proportion of Shanghai Chicmax Cosmetic Co., Ltd.. It has a market capitalization of just HK$14b, and insiders have HK$5.5b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Chicmax Cosmetic. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Shanghai Chicmax Cosmetic you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.