Stock Analysis

Following recent decline, Hygeia Healthcare Holdings Co., Limited's (HKG:6078) top shareholder CEO Yiwen Zhu sees holdings value drop by 9.5%

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SEHK:6078

Key Insights

If you want to know who really controls Hygeia Healthcare Holdings Co., Limited (HKG:6078), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 9.5%.

Let's delve deeper into each type of owner of Hygeia Healthcare Holdings, beginning with the chart below.

See our latest analysis for Hygeia Healthcare Holdings

SEHK:6078 Ownership Breakdown December 16th 2024

What Does The Institutional Ownership Tell Us About Hygeia Healthcare 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.

Hygeia Healthcare Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Hygeia Healthcare Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:6078 Earnings and Revenue Growth December 16th 2024

We note that hedge funds don't have a meaningful investment in Hygeia Healthcare Holdings. With a 45% stake, CEO Yiwen Zhu is the largest shareholder. The second and third largest shareholders are Fidelity International Ltd and E Fund Management Co., Ltd., with an equal amount of shares to their name at 5.0%.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Hygeia Healthcare Holdings

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Hygeia Healthcare Holdings Co., Limited. It is very interesting to see that insiders have a meaningful HK$4.3b stake in this HK$9.3b 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

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hygeia Healthcare Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.

Valuation is complex, but we're here to simplify it.

Discover if Hygeia Healthcare Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.