What Kind Of Investors Own Most Of Beijing Enterprises Urban Resources Group Limited (HKG:3718)?

By
Simply Wall St
Published
January 17, 2022
SEHK:3718
Source: Shutterstock

Every investor in Beijing Enterprises Urban Resources Group Limited (HKG:3718) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of HK$2.2b, Beijing Enterprises Urban Resources Group is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Beijing Enterprises Urban Resources Group.

Check out our latest analysis for Beijing Enterprises Urban Resources Group

ownership-breakdown
SEHK:3718 Ownership Breakdown January 17th 2022

What Does The Institutional Ownership Tell Us About Beijing Enterprises Urban Resources Group?

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 Beijing Enterprises Urban Resources Group. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Beijing Enterprises Urban Resources Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SEHK:3718 Earnings and Revenue Growth January 17th 2022

Hedge funds don't have many shares in Beijing Enterprises Urban Resources Group. The company's largest shareholder is Beijing Enterprises Water Group Limited, with ownership of 28%. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 4.9% by the third-largest shareholder. Min Zhou, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Kexi Zhao is the owner of 1.1% of the company's shares.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Beijing Enterprises Urban Resources Group

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of Beijing Enterprises Urban Resources Group Limited. It has a market capitalization of just HK$2.2b, and insiders have HK$548m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 39% stake in Beijing Enterprises Urban Resources Group. 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

We can see that public companies hold 28% of the Beijing Enterprises Urban Resources Group shares on issue. 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 Beijing Enterprises Urban Resources Group is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

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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