Insiders Give Up HK$995k As Huasheng International Holding Stock Drops To HK$0.15

Simply Wall St · 09/12 23:08

The recent price decline of 12% in Huasheng International Holding Limited's (HKG:1323) stock may have disappointed insiders who bought HK$3.36m worth of shares at an average price of HK$0.21 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth HK$2.37m, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Huasheng International Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Chia-Hsiang Chang bought HK$1.5m worth of shares at a price of HK$0.24 per share. That means that an insider was happy to buy shares at above the current price of HK$0.15. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Chia-Hsiang Chang.

Chia-Hsiang Chang bought a total of 16.22m shares over the year at an average price of HK$0.21. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Huasheng International Holding

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SEHK:1323 Insider Trading Volume September 12th 2025

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Huasheng International Holding insiders own 40% of the company, currently worth about HK$44m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Huasheng International Holding Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Huasheng International Holding insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Huasheng International Holding (of which 1 is a bit unpleasant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.