Public companies in Beijing Yanjing Brewery Co.,Ltd. (SZSE:000729) are its biggest bettors, and their bets paid off as stock gained 5.2% last week

Key Insights

• The considerable ownership by public companies in Beijing Yanjing BreweryLtd indicates that they collectively have a greater say in management and business strategy
• 59% of the company is held by a single shareholder (Beijing Enterprises Holdings Limited)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Beijing Yanjing Brewery Co.,Ltd. (SZSE:000729) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit CN¥25b market cap following a 5.2% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Beijing Yanjing BreweryLtd.

See our latest analysis for Beijing Yanjing BreweryLtd

What Does The Institutional Ownership Tell Us About Beijing Yanjing 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.

As you can see, institutional investors have a fair amount of stake in Beijing Yanjing BreweryLtd. 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 Beijing Yanjing BreweryLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Beijing Yanjing BreweryLtd. Beijing Enterprises Holdings Limited is currently the largest shareholder, with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. Goldman Sachs Group, Investment Banking and Securities Investments is the second largest shareholder owning 0.9% of common stock, and National Council for Social Security Fund holds about 0.8% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Beijing Yanjing BreweryLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data suggests that insiders own under 1% of Beijing Yanjing Brewery Co.,Ltd. in their own names. Keep in mind that it's a big company, and the insiders own CN¥768k worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Beijing Yanjing BreweryLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 59% of Beijing Yanjing BreweryLtd stock. 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. Case in point: We've spotted 1 warning sign for Beijing Yanjing BreweryLtd you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com