Stock Analysis

What Kind Of Investors Own Most Of Yestar Healthcare Holdings Company Limited (HKG:2393)?

SEHK:2393
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A look at the shareholders of Yestar Healthcare Holdings Company Limited (HKG:2393) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Yestar Healthcare Holdings is not a large company by global standards. It has a market capitalization of HK$2.8b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about Yestar Healthcare Holdings.

Check out our latest analysis for Yestar Healthcare Holdings

ownership-breakdown
SEHK:2393 Ownership Breakdown March 15th 2021

What Does The Lack Of Institutional Ownership Tell Us About Yestar Healthcare Holdings?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Yestar Healthcare Holdings, for yourself, below.

earnings-and-revenue-growth
SEHK:2393 Earnings and Revenue Growth March 15th 2021

Hedge funds don't have many shares in Yestar Healthcare Holdings. Looking at our data, we can see that the largest shareholder is the CEO James Hartono with 26% of shares outstanding. Jeane Hartono is the second largest shareholder owning 17% of common stock, and Rico Hartono holds about 11% of the company stock.

After doing some more digging, we found that the top 3 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Yestar Healthcare 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. 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.

Our information suggests that insiders own more than half of Yestar Healthcare Holdings Company Limited. This gives them effective control of the company. So they have a HK$1.7b stake in this HK$2.8b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 28% ownership, the general public have some degree of sway over Yestar Healthcare 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.

Public Company Ownership

We can see that public companies hold 9.8% of the Yestar Healthcare Holdings shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Yestar Healthcare Holdings better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Yestar Healthcare Holdings you should be aware of, and 2 of them are significant.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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. 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.
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