How Much Of Yue Yuen Industrial (Holdings) Limited (HKG:551) Do Institutions Own?

A look at the shareholders of Yue Yuen Industrial (Holdings) Limited (HKG:551) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Yue Yuen Industrial (Holdings) is a pretty big company. It has a market capitalization of HK$28b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Yue Yuen Industrial (Holdings).

View our latest analysis for Yue Yuen Industrial (Holdings)

What Does The Institutional Ownership Tell Us About Yue Yuen Industrial (Holdings)?

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.

As you can see, institutional investors have a fair amount of stake in Yue Yuen Industrial (Holdings). 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 Yue Yuen Industrial (Holdings), (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Yue Yuen Industrial (Holdings). The company's largest shareholder is Pou Chen Corporation, with ownership of 51%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Silchester International Investors LLP is the second largest shareholder owning 6.0% of common stock, and The Vanguard Group, Inc. holds about 1.3% of the company stock.

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 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 Yue Yuen Industrial (Holdings)

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.

Our data suggests that insiders own under 1% of Yue Yuen Industrial (Holdings) Limited in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$8.8m 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 36% ownership, the general public have some degree of sway over Yue Yuen Industrial (Holdings). 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 51% of the Yue Yuen Industrial (Holdings) shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Yue Yuen Industrial (Holdings) that you should be aware of before investing here.

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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This article by Simply Wall St is general in nature. 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.
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