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Bullish Redco Healthy Living Insiders Rewarded As Their Investment Rises To CN¥110.4m

Simply Wall St · 3d ago

Last week, Redco Healthy Living Company Limited (HKG:2370) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a HK$24m increase in the company's market worth, implying a 14% gain on their initial purchase. As a result, their original purchase of CN¥97.2m worth of stock is now worth CN¥110.4m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Redco Healthy Living

In the last twelve months, the biggest single purchase by an insider was when insider Chun Zhu Lin bought HK$52m worth of shares at a price of HK$1.09 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$1.15. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Redco Healthy Living share holders is that an insider was buying at near the current price. Chun Zhu Lin was the only individual insider to buy during the last year.

Chun Zhu Lin bought 96.00m shares over the last 12 months at an average price of HK$1.01. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Redco Healthy Living

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SEHK:2370 Insider Trading Volume July 28th 2026

Redco Healthy Living is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Redco Healthy Living Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Redco Healthy Living insiders own 24% of the company, worth about HK$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Redco Healthy Living Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Redco Healthy Living insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Redco Healthy Living. Our analysis shows 3 warning signs for Redco Healthy Living (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

But note: Redco Healthy Living 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.