Key Insights
- Shanghai Chicmax Cosmetic's significant employee share scheme ownership suggests that the key decisions are influenced by shareholders from the larger public
- 83% of the business is held by the top 2 shareholders
- Insiders have bought recently
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. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While insiders who own 41% came under pressure after market cap dropped to HK$17b last week,employee share scheme took the most losses.
In the chart below, we zoom in on the different ownership groups of Shanghai Chicmax Cosmetic.
View our latest analysis for Shanghai Chicmax Cosmetic
What Does The Institutional Ownership Tell Us About Shanghai Chicmax Cosmetic?
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.
Less than 5% of Shanghai Chicmax Cosmetic is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. 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 Shanghai Chicmax Cosmetic. Our data shows that Shanghai Chicmax Cosmetic Co., Ltd, ESOP is the largest shareholder with 42% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 40% and 0.4%, of the shares outstanding, respectively. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.
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.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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.
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.
Our most recent data indicates that insiders own a reasonable proportion of Shanghai Chicmax Cosmetic Co., Ltd.. It is very interesting to see that insiders have a meaningful HK$7.0b stake in this HK$17b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 16% stake in Shanghai Chicmax Cosmetic. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Chicmax Cosmetic better, we need to consider many other factors.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future .
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.