Each investor in Haidilao International Holding Ltd. (HKG: 6862) needs to know the most powerful shareholder groups. With a 41% stake, individual insiders own the most shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
It follows that every decision taken by insiders of Haidilao International Holding regarding the future of the company would be crucial for them.
Let’s take a closer look at what different types of shareholders can tell us about Haidilao International Holding.
See our latest analysis for Haidilao International Holding
What does institutional ownership tell us about Haidilao 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.
We can see that Haidilao International Holding has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Haidilao International Holding, (below). Of course, keep in mind that there are other factors to consider as well.
We note that hedge funds have no significant investment in Haidilao International Holding. The company’s largest shareholder is Np United Holding Ltd with a 32% stake. With respectively 21% and 9.4% of the outstanding shares, Yong Zhang and Yonghong Shi are the second and third shareholders. Yong Zhang, who is the second largest shareholder, also holds the title of Top Key Executive. Additionally, the company’s CEO, Lijuan Yang, directly owns 3.2% of the total shares outstanding.
After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence company decisions.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Haidilao International Holding Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders hold a significant stake in Haidilao International Holding Ltd. It is very interesting to see that insiders hold a significant HK$36 billion stake in this HK$88 billion company. Most would be delighted to see the board investing alongside them. You may want to access this free chart showing recent insider trades.
General public property
With a 21% stake, the general public, consisting mainly of individual investors, has some influence over Haidilao International Holding. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
Our data indicates that private companies own 32% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
It is always useful to think about the different groups that own shares in a company. But to better understand Haidilao International Holding, we need to consider many other factors. Know that Haidilao International Holding shows 1 warning sign in our investment analysis you should know…
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
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.
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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.