With 67% ownership, Eastroc Beverage(Group) Co., Ltd. (SHSE:605499) insiders have a lot at stake

Key Insights

• Significant insider control over Eastroc Beverage(Group) implies vested interests in company growth
• Muqin Lin owns 51% of the company
• Institutions own 14% of Eastroc Beverage(Group)

A look at the shareholders of Eastroc Beverage(Group) Co., Ltd. (SHSE:605499) can tell us which group is most powerful. With 67% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Eastroc Beverage(Group) regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about Eastroc Beverage(Group).

View our latest analysis for Eastroc Beverage(Group)

What Does The Institutional Ownership Tell Us About Eastroc Beverage(Group)?

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.

Eastroc Beverage(Group) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Eastroc Beverage(Group), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Eastroc Beverage(Group). Looking at our data, we can see that the largest shareholder is the CEO Muqin Lin with 51% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. With 6.4% and 5.2% of the shares outstanding respectively, Yantai Kunpeng Investment Development Partnership Enterprise (Limited Partnership) and Daiqin Lin are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Eastroc Beverage(Group)

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Eastroc Beverage(Group) Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful CN¥86b stake in this CN¥128b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 6.9%, of the Eastroc Beverage(Group) stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Eastroc Beverage(Group) is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.