What Kind Of Shareholders Hold The Majority In Precision Tsugami (China) Corporation Limited's (HKG:1651) Shares?

By
Simply Wall St
Published
May 26, 2021
SEHK:1651
Source: Shutterstock

If you want to know who really controls Precision Tsugami (China) Corporation Limited (HKG:1651), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Precision Tsugami (China) is a smaller company with a market capitalization of HK$4.0b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Precision Tsugami (China).

Check out our latest analysis for Precision Tsugami (China)

ownership-breakdown
SEHK:1651 Ownership Breakdown May 26th 2021

What Does The Institutional Ownership Tell Us About Precision Tsugami (China)?

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.

Precision Tsugami (China) 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. 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 Precision Tsugami (China)'s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:1651 Earnings and Revenue Growth May 26th 2021

We note that hedge funds don't have a meaningful investment in Precision Tsugami (China). Tsugami Corporation is currently the company's largest shareholder with 71% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Wellington Management Group LLP is the second largest shareholder owning 3.7% of common stock, and UBS Asset Management holds about 3.5% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Precision Tsugami (China)

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Precision Tsugami (China) Corporation Limited insiders own under 1% of the company. It appears that the board holds about HK$1.6m worth of stock. This compares to a market capitalization of HK$4.0b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 12% ownership, the general public have some degree of sway over Precision Tsugami (China). 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

It appears to us that public companies own 71% of Precision Tsugami (China). It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Precision Tsugami (China) better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Precision Tsugami (China) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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