Public companies among FuJian YanJing HuiQuan Brewery Co.,Ltd's (SHSE:600573) largest shareholders, saw gain in holdings value after stock jumped 17% last week

Key Insights

• The considerable ownership by public companies in FuJian YanJing HuiQuan BreweryLtd indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Beijing Enterprises Holdings Limited with a 50% stake
• Institutional ownership in FuJian YanJing HuiQuan BreweryLtd is 13%

Every investor in FuJian YanJing HuiQuan Brewery Co.,Ltd (SHSE:600573) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, public companies benefitted the most after the company's market cap rose by CN¥383m last week.

Let's delve deeper into each type of owner of FuJian YanJing HuiQuan BreweryLtd, beginning with the chart below.

See our latest analysis for FuJian YanJing HuiQuan BreweryLtd

What Does The Institutional Ownership Tell Us About FuJian YanJing HuiQuan BreweryLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

FuJian YanJing HuiQuan BreweryLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at FuJian YanJing HuiQuan BreweryLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in FuJian YanJing HuiQuan BreweryLtd. The company's largest shareholder is Beijing Enterprises Holdings Limited, with ownership of 50%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 2.9% and 1.2% of the shares outstanding respectively, Yinhua Fund Management Co., Ltd. and Morgan Stanley, Investment Banking and Brokerage Investments are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of FuJian YanJing HuiQuan BreweryLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of FuJian YanJing HuiQuan Brewery Co.,Ltd. It seems the board members have no more than CN¥227k worth of shares in the CN¥2.7b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over FuJian YanJing HuiQuan BreweryLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 50% of the FuJian YanJing HuiQuan BreweryLtd shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.