Insiders are the largest shareholders of Zensun Enterprises Limited (HKG: 185), and the recent 11% drop may have disappointed them
To get an idea of who actually controls Zensun Enterprises Limited (HKG: 185), it is important to understand the ownership structure of the company. We can see that individual insiders hold the lion’s share of the company with 72% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
As the market capitalization fell to HK$6.5 billion last week, insiders reportedly suffered the highest losses than any other group of shareholders in the company.
In the table below, we zoom in on the different ownership groups of Zensun Enterprises.
Check out our latest analysis for Zensun Enterprises
What does institutional ownership tell us about Zensun Enterprises?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Institutions have a very small stake in Zensun Enterprises. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company is increasing its earnings, it may indicate that it is just beginning to attract the attention of those deep-pocketed investors. When several institutional investors wish to buy shares, we often see a rise in the price of the share. Past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds do not have many shares in Zensun Enterprises. Yanping Huang is currently the largest shareholder, with 72% of shares outstanding. This implies that they have majority control over the future of the company. Meanwhile, the second and third largest shareholders hold 0.3% and 0.3% of the outstanding shares respectively.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider Ownership of Zensun Enterprises
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own the majority of Zensun Enterprises Limited. This means they can collectively make decisions for the business. That means they own HK$4.7 billion worth of shares in the HK$6.5 billion company. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public, who are usually individual investors, hold a 27% stake in Zensun Enterprises. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
It is always useful to think about the different groups that own shares in a company. But to better understand Zensun Enterprises, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Zensun Enterprises (1 of which can’t be ignored!) that you should know about.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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