Key Insights
- Hopson Development Holdings' significant insider ownership suggests inherent interests in company's expansion
- Mang Yee Chu owns 54% of the company
- Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of Hopson Development Holdings Limited (HKG:754) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders as a group endured the highest losses after market cap fell by HK$834m.
Let's delve deeper into each type of owner of Hopson Development Holdings, beginning with the chart below.
View our latest analysis for Hopson Development Holdings
What Does The Institutional Ownership Tell Us About Hopson Development Holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Since institutions own only a small portion of Hopson Development 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. 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.
We note that hedge funds don't have a meaningful investment in Hopson Development Holdings. Mang Yee Chu is currently the largest shareholder, with 54% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Yat Hong Chu is the second largest shareholder owning 18% of common stock, and Wai Kin Au holds about 1.6% of the company stock. Wai Kin Au, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Hopson Development 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.
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 Hopson Development Holdings Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$12b, that means insiders have a whopping HK$8.8b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Hopson Development Holdings is showing 4 warning signs in our investment analysis , and 2 of those can't be ignored...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.