Public companies among Henan Shuanghui Investment & Development Co.,Ltd.'s (SZSE:000895) largest stockholders and were hit after last week's 4.7% price drop

Key Insights

• Henan Shuanghui Investment & DevelopmentLtd's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is WH Group Limited with a 70% stake
• Institutions own 12% of Henan Shuanghui Investment & DevelopmentLtd

Every investor in Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies 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).

As a result, public companies as a group endured the highest losses last week after market cap fell by CN¥4.3b.

Let's take a closer look to see what the different types of shareholders can tell us about 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?

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 Henan Shuanghui Investment & DevelopmentLtd. 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. 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.

Hedge funds don't have many shares in Henan Shuanghui Investment & DevelopmentLtd. Our data shows that WH Group Limited is the largest shareholder with 70% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.0% and 1.7% of the shares outstanding respectively, China Life Asset Management Company Limited and China Securities Finance Corp, Asset Management Arm are the second and third largest shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 Henan Shuanghui Investment & Development Co.,Ltd. in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own CN¥15m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been 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. 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

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:

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 Henan Shuanghui Investment & DevelopmentLtd is showing 1 warning sign in our investment analysis , you should know about...

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.