Fu Shou Yuan International Group Limited's (HKG:1448) last week's 10% decline must have disappointed private companies who have a significant stake

Key Insights

• Fu Shou Yuan International Group's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 5 investors have a majority stake in the company with 51% ownership
• Insiders own 10% of Fu Shou Yuan International Group

If you want to know who really controls Fu Shou Yuan International Group Limited (HKG:1448), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to HK$9.5b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Fu Shou Yuan International Group.

Check out our latest analysis for Fu Shou Yuan International Group

What Does The Institutional Ownership Tell Us About Fu Shou Yuan International 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 Fu Shou Yuan International Group. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Fu Shou Yuan International Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Fu Shou Yuan International Group. Looking at our data, we can see that the largest shareholder is China Zhongfu Industry Co., Ltd. with 21% of shares outstanding. With 14% and 6.7% of the shares outstanding respectively, FSG Holding Corporation and Sunshine Asset Management Corporation Limited are the second and third largest shareholders. Additionally, the company's CEO Jisheng Wang directly holds 4.3% of the total shares outstanding.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 Fu Shou Yuan International Group

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.

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 most recent data indicates that insiders own a reasonable proportion of Fu Shou Yuan International Group Limited. It has a market capitalization of just HK$9.5b, and insiders have HK$976m worth of shares in their own names. That's quite significant. 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 35% stake in Fu Shou Yuan International Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 35%, of the Fu Shou Yuan International Group stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

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

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. 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.