Champion Real Estate Investment Trust’s (HKG:2778) top owners are public companies with 59% stake, while 27% is held by individual investors

To get a sense of who is truly in control of Champion Real Estate Investment Trust (HKG:2778), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 59% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 27% of the company’s stockholders.

In the chart below, we zoom in on the different ownership groups of Champion Real Estate Investment Trust.

View our latest analysis for Champion Real Estate Investment Trust

SEHK:2778 Ownership Breakdown June 27th 2022

What Does The Institutional Ownership Tell Us About Champion Real Estate Investment Trust?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Champion Real Estate Investment Trust. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Champion Real Estate Investment Trust, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthSEHK:2778 Earnings and Revenue Growth June 27th 2022

We note that hedge funds don’t have a meaningful investment in Champion Real Estate Investment Trust. The company’s largest shareholder is Great Eagle Holdings Limited, with ownership of 59%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 8.7% of the shares outstanding, followed by an ownership of 1.3% by the third-largest shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Champion Real Estate Investment Trust

The definition of an insider may 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 information suggests that Champion Real Estate Investment Trust insiders own under 1% of the company. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$94m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Champion Real Estate Investment Trust. 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.

Public Company Ownership

We can see that public companies hold 59% of the Champion Real Estate Investment Trust shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

next steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 1 warning sign for Champion Real Estate Investment Trust you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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.