Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    70,833.38
    +2,136.03 (+3.11%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,258.27
    +9.78 (+0.19%)
     
  • Dow

    39,825.07
    +64.99 (+0.16%)
     
  • Nasdaq

    16,390.84
    -8.69 (-0.05%)
     
  • Gold

    2,239.80
    +27.10 (+1.22%)
     
  • Crude Oil

    82.99
    +1.64 (+2.02%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Who Are The Major Shareholders In Cityneon Holdings Limited (SGX:5HJ)?

I am going to take a deep dive into Cityneon Holdings Limited’s (SGX:5HJ) most recent ownership structure, not a frequent subject of discussion among individual investors. Ownership structure of a company has been found to affect share performance over time. Differences in ownership structure of companies can have a profound effect on how management’s incentives are aligned with shareholder returns, which is why we’ll take a moment to analyse 5HJ’s shareholder registry.

See our latest analysis for Cityneon Holdings

SGX:5HJ Ownership_summary Jun 8th 18
SGX:5HJ Ownership_summary Jun 8th 18

Institutional Ownership

Due to the big order sizes of institutional investors, a company’s shares can experience large, one-sided momentum, driven by high volume of shares removed from, or injected into, the market. With an institutional ownership of 4.05%, 5HJ doesn’t seem too exposed to higher volatility resulting from institutional trading.

Insider Ownership

Insiders form another group of important ownership types as they manage the company’s operations and decide the best use of capital. Insider ownership has been linked to better alignment between management and shareholders. 5HJ insiders hold a not-so-significant 2.57% stake in the company, which somewhat aligns their interests with that of shareholders. However, a higher level of insider ownership has been linked to management executing on high-returning projects instead of expansion projects for the sake of apparent growth. It would also be interesting to check what insiders have been doing with their shareholding recently. Insider buying can be a positive indicator of future performance, but a selling decision can be simply driven by personal financial requirements.

General Public Ownership

A substantial ownership of 23.01% in 5HJ is held by the general public. With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Company Ownership

Potential investors in 5HJ should also look at another important group of investors: private companies, with a stake of 70.37%, who are primarily invested because of strategic and capital gain interests. An ownership of this size indicates a strong financial backing and has the potential to influence 5HJ’s business strategy. Thus, investors should dig deeper into 5HJ’s business relations with these companies and how it can affect shareholder returns in the long-term.

Next Steps:

Institutional ownership level and composition in 5HJ is not high nor active enough to significantly impact its investment thesis. However, ownership structure should not be the only determining factor when you’re building an investment thesis for 5HJ. Rather, you should be examining fundamental factors such as Cityneon Holdings’s past track record and financial health. I highly recommend you to complete your research by taking a look at the following:

ADVERTISEMENT
  1. Future Outlook: What are well-informed industry analysts predicting for 5HJ’s future growth? Take a look at our free research report of analyst consensus for 5HJ’s outlook.

  2. Past Track Record: Has 5HJ been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of 5HJ’s historicals for more clarity.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.