While individual investors own 25% of S.F. Holding Co., Ltd. (SZSE:002352), private companies are its largest shareholders with 50% ownership

Key Insights

• S.F. Holding's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Shenzhen Mingde Holding Development Co., Ltd. with a 50% stake
• 23% of S.F. Holding is held by Institutions

To get a sense of who is truly in control of S.F. Holding Co., Ltd. (SZSE:002352), it is important to understand the ownership structure of the business. With 50% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 25% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about S.F. Holding.

See our latest analysis for S.F. Holding

What Does The Institutional Ownership Tell Us About S.F. Holding?

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.

We can see that S.F. Holding does have institutional investors; and they hold a good portion of the company's stock. 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 S.F. Holding, (below). Of course, keep in mind that there are other factors to consider, too.

S.F. Holding is not owned by hedge funds. Shenzhen Mingde Holding Development Co., Ltd. is currently the company's largest shareholder with 50% of shares outstanding. This implies that they have majority interest control of the future of the company. Hong Kong Exchanges & Clearing Limited, Asset Management Arm is the second largest shareholder owning 4.8% of common stock, and Shenzhen Zhaoguang Investment Co., Ltd. holds about 3.9% 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 S.F. Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in S.F. Holding Co., Ltd.. Insiders own CN¥2.9b worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in S.F. Holding. 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.

Private Company Ownership

It seems that Private Companies own 50%, of the S.F. Holding 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:

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. For instance, we've identified 1 warning sign for S.F. Holding that 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.