Individual investors among Chow Sang Sang Holdings International Limited's (HKG:116) largest stockholders and were hit after last week's 4.9% price drop

Key Insights

• The considerable ownership by individual investors in Chow Sang Sang Holdings International indicates that they collectively have a greater say in management and business strategy
• A total of 5 investors have a majority stake in the company with 55% ownership
• Insiders own 20% of Chow Sang Sang Holdings International

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To get a sense of who is truly in control of Chow Sang Sang Holdings International Limited (HKG:116), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual investors with 34% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to HK$9.9b last week, individual investors would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Chow Sang Sang Holdings International.

See our latest analysis for Chow Sang Sang Holdings International

What Does The Institutional Ownership Tell Us About Chow Sang Sang Holdings International?

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.

We can see that Chow Sang Sang Holdings International does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Chow Sang Sang Holdings International, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Chow Sang Sang Holdings International. Looking at our data, we can see that the largest shareholder is Everwin Company Ltd with 20% of shares outstanding. The second and third largest shareholders are Wun Sing Chow and King Sing Chow, with an equal amount of shares to their name at 10%. Interestingly, the bottom two of the top three shareholders also hold the title of Senior Key Executive and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Chow Sang Sang Holdings International

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.

Our most recent data indicates that insiders own a reasonable proportion of Chow Sang Sang Holdings International Limited. It has a market capitalization of just HK$9.9b, and insiders have HK$2.0b 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 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chow Sang Sang Holdings International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 28%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chow Sang Sang Holdings International better, we need to consider many other factors. Take risks for example - Chow Sang Sang Holdings International has 1 warning sign we think you should be aware of.

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.