To get an idea of who really controls Kerry Properties Limited (HKG:683), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie are 60%-owned private companies. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
As a result, private companies collectively achieved the highest score last week, with the company reaching a market capitalization of HK$32 billion after a 6.3% gain in the stock.
Let’s dive deeper into each Kerry Properties owner type, starting with the table below.
See our latest analysis for Kerry Properties
What does institutional ownership tell us about Kerry properties?
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.
We can see that Kerry Properties has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Kerry Properties’ earnings history below. Of course, the future is what really matters.
Hedge funds don’t have a lot of shares in Kerry Properties. Looking at our data, we can see that the major shareholder is Kerry Group Limited with 58% of the shares outstanding. This essentially means that they have considerable influence, if not absolute control, over the future of the company. Schroder Investment Management Limited is the second largest shareholder with 2.9% of the common shares and Schroder Investment Management (Hong Kong) Limited owns approximately 1.9% of the company’s shares.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Kerry Properties Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders of Kerry Properties Limited own less than 1% of the company. But they may have an indirect interest through a corporate structure that we have not noted. Keep in mind this is a big company and insiders hold HK$251 million worth of shares. The absolute value can be more important than the proportional share. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
The general public, who are usually individual investors, hold a 23% stake in Kerry Properties. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
Private Company Ownership
It appears that private companies own 60% of the shares of Kerry Properties. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
It is always useful to think about the different groups that own shares in a company. But to better understand Kerry Properties, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 1 warning sign with Kerry Properties, and understanding them should be part of your investment process.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.