Xiabuxiabu Catering Management (China) Holdings Co., Ltd.'s (HKG:520) market cap dropped HK$293m last week; Individual investors bore the brunt

Key Insights

• Xiabuxiabu Catering Management (China) Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 51% of the business is held by the top 5 shareholders
• Insiders own 37% of Xiabuxiabu Catering Management (China) Holdings

To get a sense of who is truly in control of Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 46% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 11% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 37% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Xiabuxiabu Catering Management (China) Holdings.

View our latest analysis for Xiabuxiabu Catering Management (China) Holdings

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

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.

Hedge funds don't have many shares in Xiabuxiabu Catering Management (China) Holdings. With a 37% stake, CEO Kuang-Chi Ho is the largest shareholder. BlackRock, Inc. is the second largest shareholder owning 9.0% of common stock, and Goldman Sachs Group, Investment Banking and Securities Investments holds about 1.9% of the company stock.

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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Xiabuxiabu Catering Management (China) 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.

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.

It seems insiders own a significant proportion of Xiabuxiabu Catering Management (China) Holdings Co., Ltd.. It has a market capitalization of just HK$2.3b, and insiders have HK$830m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xiabuxiabu Catering Management (China) 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.