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Every investor in Sanai Health Industry Group Company Limited (HKG:1889) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Sanai Health Industry Group is not a large company by global standards. It has a market capitalization of HK$1.3b, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased much of the company. Let’s delve deeper into each type of owner, to discover more about 1889.
Check out our latest analysis for Sanai Health Industry Group
What Does The Institutional Ownership Tell Us About Sanai Health Industry Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Since institutions own under 5% of Sanai Health Industry Group, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it’s the future that counts most.
Hedge funds don’t have many shares in Sanai Health Industry Group. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Sanai Health Industry Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Sanai Health Industry Group Company Limited. Insiders have a HK$358m stake in this HK$1.3b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.