Individual investors own 18% of Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895) shares but public companies control 70% of the company

Key Insights

• Significant control over Henan Shuanghui Investment & DevelopmentLtd by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is WH Group Limited with a 70% stake
• Institutional ownership in Henan Shuanghui Investment & DevelopmentLtd is 12%

If you want to know who really controls Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 70% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 18% of the company’s shareholders.

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

Check out our latest analysis for Henan Shuanghui Investment & DevelopmentLtd

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

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.

Henan Shuanghui Investment & DevelopmentLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Henan Shuanghui Investment & DevelopmentLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Henan Shuanghui Investment & DevelopmentLtd is not owned by hedge funds. The company's largest shareholder is WH Group Limited, with ownership of 70%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. China Life Asset Management Company Limited is the second largest shareholder owning 3.0% of common stock, and China Securities Finance Corp, Asset Management Arm holds about 1.7% of the company stock.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Henan Shuanghui Investment & DevelopmentLtd

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.

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. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own CN¥15m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Henan Shuanghui Investment & DevelopmentLtd. 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.

Public Company Ownership

Public companies currently own 70% of Henan Shuanghui Investment & DevelopmentLtd 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:

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. To that end, you should be aware of the 1 warning sign we've spotted with Henan Shuanghui Investment & DevelopmentLtd .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.