Insider Buying: Sino Biopharmaceutical Senior VP & Executive Director Bought CN¥6.5m Of Shares

Simply Wall St · 07/24 23:29

Sino Biopharmaceutical Limited (HKG:1177) shareholders (or potential shareholders) will be happy to see that the Senior VP & Executive Director, Hsin Tse, recently bought a whopping HK$6.5m worth of stock, at a price of HK$6.47. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

Sino Biopharmaceutical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder & Senior Executive Vice Chairman, Ping Tse, for HK$51m worth of shares, at about HK$3.72 per share. That means that even when the share price was below the current price of HK$6.71, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 0.8% of Ping Tse's holding. The only individual insider seller over the last year was Ping Tse.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Sino Biopharmaceutical

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SEHK:1177 Insider Trading Volume July 24th 2025

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Sino Biopharmaceutical

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Sino Biopharmaceutical insiders own about HK$61b worth of shares (which is 51% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Sino Biopharmaceutical Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that Sino Biopharmaceutical insiders are fairly aligned, and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Sino Biopharmaceutical and we suggest you have a look.

But note: Sino Biopharmaceutical may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.