06-04-2025
Owning 78% in GSH Corporation Limited (SGX:BDX) means that insiders are heavily invested in the company's future
Significant insider control over GSH implies vested interests in company growth
64% of the company is held by a single shareholder (Seng Hui Goi)
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
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A look at the shareholders of GSH Corporation Limited (SGX:BDX) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 78% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
So it follows, every decision made by insiders of GSH regarding the company's future would be crucial to them.
Let's take a closer look to see what the different types of shareholders can tell us about GSH.
View our latest analysis for GSH
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. GSH's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in GSH. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In GSH's case, its Top Key Executive, Seng Hui Goi, is the largest shareholder, holding 64% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.0% and 5.1% of the stock. Interestingly, the second-largest shareholder, Guan Hui Ee is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own the majority of GSH Corporation Limited. This means they can collectively make decisions for the company. So they have a S$245m stake in this S$315m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
The general public, who are usually individual investors, hold a 11% stake in GSH. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It seems that Private Companies own 11%, of the GSH stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
It's always worth thinking about the different groups who own shares in a company. But to understand GSH better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for GSH (of which 2 don't sit too well with us!) you should know about.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
