The recent 10.0% gain must have brightened CEO Guojun Jin's week, Bonny International Holding Limited's (HKG:1906) most bullish insider
Key Insights
- Insiders appear to have a vested interest in Bonny International Holding's growth, as seen by their sizeable ownership
- Guojun Jin 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
Every investor in Bonny International Holding Limited (HKG:1906) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders were the biggest beneficiaries of last week’s 10.0% gain.
Let's take a closer look to see what the different types of shareholders can tell us about Bonny International Holding.
See our latest analysis for Bonny International Holding
What Does The Lack Of Institutional Ownership Tell Us About Bonny International Holding?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. 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 Bonny International Holding, for yourself, below.
We note that hedge funds don't have a meaningful investment in Bonny International Holding. With a 54% stake, CEO Guojun Jin is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Jingyi Huang is the second largest shareholder, holding 0.7%.
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 Bonny International Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 information suggests that insiders own more than half of Bonny International Holding Limited. This gives them effective control of the company. Given it has a market cap of HK$809m, that means they have HK$442m worth of shares. 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 45% stake in Bonny International Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Bonny International Holding better, we need to consider many other factors. Take risks for example - Bonny International Holding has 3 warning signs (and 1 which is significant) we think you should know about.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.