To get an idea of who really controls Yihai International Holding Ltd. (HKG:1579), it is important to understand the ownership structure of the business. And the group that holds the biggest slice of the pie are individual investors with 39% ownership. That is, the group will benefit the most if the stock goes up (or loses the most if there is a downturn).
While individual investor holdings took a hit after prices fell 4.3% last week, insiders with their 38% also suffered.
In the chart below, we zoom in on the different ownership groups of Yihai International Holding.
See our latest analysis for Yihai International Holding
What does institutional ownership tell us about Yihai International Holding?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Yihai International Holding already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Yihai International Holding’s historical earnings and revenue below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Yihai International Holding. Looking at our data, we can see that the major shareholder is Yong Zhang with 38% of the outstanding shares. UBS Asset Management is the second largest shareholder with 7.4% of common stock and The Vanguard Group, Inc. owns approximately 1.9% of the company’s stock.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider ownership of Yihai International Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Yihai International Holding Ltd. It is very interesting to see that insiders hold a significant HK$7.8 billion stake in this HK$20 billion company. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
With a 39% stake, the general public, consisting mainly of individual investors, has some influence over Yihai International Holding. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
It is always useful to think about the different groups that own shares in a company. But to better understand Yihai International Holding, we need to consider many other factors. For example, we have identified 1 warning sign for Yihai International Holding of which you should be aware.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.