What Kind Of Investors Own Most Of Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520)?

The big shareholder groups in Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of HK$24b, Xiabuxiabu Catering Management (China) Holdings is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Xiabuxiabu Catering Management (China) Holdings.

Check out our latest analysis for Xiabuxiabu Catering Management (China) Holdings

What Does The Institutional Ownership Tell Us About Xiabuxiabu Catering Management (China) Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Xiabuxiabu Catering Management (China) Holdings does have institutional investors; and they hold a good portion of the company's stock. 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 Xiabuxiabu Catering Management (China) Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Xiabuxiabu Catering Management (China) Holdings. Our data suggests that Kuang-Chi Ho, who is also the company's Top Key Executive, holds the most number of shares at 42%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 14% and 5.3% of the shares outstanding respectively, General Atlantic Service Company, L.P. and Hillhouse Capital Management, Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Xiabuxiabu Catering Management (China) Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Xiabuxiabu Catering Management (China) Holdings Co., Ltd.. It is very interesting to see that insiders have a meaningful HK$10b stake in this HK$24b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public holds a 23% stake in Xiabuxiabu Catering Management (China) Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 19%, private equity firms could influence the Xiabuxiabu Catering Management (China) Holdings board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Xiabuxiabu Catering Management (China) 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 Xiabuxiabu Catering Management (China) Holdings you should know about.

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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