Could The Munsun Capital Group Limited (HKG:1194) Ownership Structure Tell Us Something Useful?

A look at the shareholders of Munsun Capital Group Limited (HKG:1194) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of HK$516m, Munsun Capital Group is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about 1194.

View our latest analysis for Munsun Capital Group

SEHK:1194 Ownership Summary, October 21st 2019
SEHK:1194 Ownership Summary, October 21st 2019

What Does The Lack Of Institutional Ownership Tell Us About Munsun Capital Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Munsun Capital Group, for yourself, below.

SEHK:1194 Income Statement, October 21st 2019
SEHK:1194 Income Statement, October 21st 2019

Hedge funds don't have many shares in Munsun Capital Group. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Munsun Capital Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Munsun Capital Group Limited. Insiders own HK$223m worth of shares in the HK$516m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.