Henan Shuanghui Investment & Development Co.,Ltd.'s (SZSE:000895) largest shareholders are public companies with 70% ownership, individual investors own 19%

Key Insights

• The considerable ownership by public companies in Henan Shuanghui Investment & DevelopmentLtd indicates that they collectively have a greater say in management and business strategy
• 70% of the company is held by a single shareholder (WH Group Limited)
• 10% of Henan Shuanghui Investment & DevelopmentLtd is held by Institutions

A look at the shareholders of Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895) can tell us which group is most powerful. The group holding the most number of shares in the company, around 70% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 19% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Henan Shuanghui Investment & DevelopmentLtd.

View our latest analysis for Henan Shuanghui Investment & DevelopmentLtd

What Does The Institutional Ownership Tell Us About Henan Shuanghui Investment & DevelopmentLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Henan Shuanghui Investment & DevelopmentLtd 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 Henan Shuanghui Investment & DevelopmentLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Henan Shuanghui Investment & DevelopmentLtd. WH Group Limited is currently the largest shareholder, with 70% of shares outstanding. This implies that they have majority interest control of the future of the company. China Life Asset Management Company Limited is the second largest shareholder owning 2.2% of common stock, and China Securities Finance Corp, Asset Management Arm holds about 1.7% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Henan Shuanghui Investment & DevelopmentLtd

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Henan Shuanghui Investment & Development Co.,Ltd. in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own CN¥16m worth of shares (at current prices). 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-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 70% of Henan Shuanghui Investment & DevelopmentLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Henan Shuanghui Investment & DevelopmentLtd 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.

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

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