Super Hi International Holding Ltd.'s (HKG:9658) 7.7% loss last week hit both individual investors who own 34% as well as institutions

Key Insights

• The considerable ownership by retail investors in Super Hi International Holding indicates that they collectively have a greater say in management and business strategy
• 60% of the business is held by the top 2 shareholders
• Institutions own 34% of Super Hi International Holding

A look at the shareholders of Super Hi International Holding Ltd. (HKG:9658) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 34% came under pressure after market cap dropped to HK$6.3b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Super Hi International Holding.

See our latest analysis for Super Hi International Holding

What Does The Institutional Ownership Tell Us About Super Hi International Holding?

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 Super Hi International Holding. 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 Super Hi International Holding, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Super Hi International Holding. The company's largest shareholder is UBS Asset Management AG, with ownership of 31%. In comparison, the second and third largest shareholders hold about 29% and 2.7% of the stock.

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.

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

Insider Ownership Of Super Hi International Holding

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Super Hi International Holding Ltd.. As individuals, the insiders collectively own HK$174m worth of the HK$6.3b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Super Hi International Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 29%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Super Hi International Holding has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.