Ausnutria Dairy Corporation Ltd's (HKG:1717) market cap surged HK$426m last week, public companies who have a lot riding on the company were rewarded

Key Insights

• The considerable ownership by public companies in Ausnutria Dairy indicates that they collectively have a greater say in management and business strategy
• Inner Mongolia Yili Industrial Group Co., Ltd. owns 60% of the company
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Ausnutria Dairy Corporation Ltd (HKG:1717) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 68% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by HK$426m last week.

In the chart below, we zoom in on the different ownership groups of Ausnutria Dairy.

See our latest analysis for Ausnutria Dairy

What Does The Institutional Ownership Tell Us About Ausnutria Dairy?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of Ausnutria Dairy, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Ausnutria Dairy. Inner Mongolia Yili Industrial Group Co., Ltd. is currently the largest shareholder, with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. Center Laboratories, Inc. is the second largest shareholder owning 8.3% of common stock, and Bartle van der Meer holds about 5.3% of the company stock. Bartle van der Meer, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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 Ausnutria Dairy

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in Ausnutria Dairy Corporation Ltd. In their own names, insiders own HK$517m worth of stock in the HK$5.3b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 16% 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.

Private Company Ownership

It seems that Private Companies own 5.2%, of the Ausnutria Dairy stock. 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.

Public Company Ownership

It appears to us that public companies own 68% of Ausnutria Dairy. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Ausnutria Dairy (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.