Yue Yuen Industrial (Holdings) Limited (HKG:551) stock most popular amongst public companies who own 51%, while individual investors hold 32%

Key Insights

• The considerable ownership by public companies in Yue Yuen Industrial (Holdings) indicates that they collectively have a greater say in management and business strategy
• 51% of the company is held by a single shareholder (Pou Chen Corporation)
• Institutions own 16% of Yue Yuen Industrial (Holdings)

A look at the shareholders of Yue Yuen Industrial (Holdings) Limited (HKG:551) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 32% ownership in the company.

Let's delve deeper into each type of owner of Yue Yuen Industrial (Holdings), beginning with the chart below.

See our latest analysis for Yue Yuen Industrial (Holdings)

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

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 Yue Yuen Industrial (Holdings). 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 Yue Yuen Industrial (Holdings)'s earnings history below. Of course, the future is what really matters.

Yue Yuen Industrial (Holdings) is not owned by hedge funds. Pou Chen Corporation is currently the largest shareholder, with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Silchester International Investors LLP is the second largest shareholder owning 5.0% of common stock, and The Vanguard Group, Inc. holds about 1.8% of the company stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Yue Yuen Industrial (Holdings)

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. 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 Yue Yuen Industrial (Holdings) Limited in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$38m worth of shares (at current prices). 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

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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 51% of Yue Yuen Industrial (Holdings). 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Yue Yuen Industrial (Holdings) better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Yue Yuen Industrial (Holdings) 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.