How Much Of Sihuan Pharmaceutical Holdings Group Ltd. (HKG:460) Do Insiders Own?

The big shareholder groups in Sihuan Pharmaceutical Holdings Group Ltd. (HKG:460) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Sihuan Pharmaceutical Holdings Group isn't enormous, but it's not particularly small either. It has a market capitalization of HK$22b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about Sihuan Pharmaceutical Holdings Group.

Check out our latest analysis for Sihuan Pharmaceutical Holdings Group

What Does The Institutional Ownership Tell Us About Sihuan Pharmaceutical Holdings Group?

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.

Institutions have a very small stake in Sihuan Pharmaceutical Holdings Group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Sihuan Pharmaceutical Holdings Group. Proper Process International Limited is currently the company's largest shareholder with 30% of shares outstanding. Successmax Global Limited is the second largest shareholder owning 13% of common stock, and Fengsheng Che holds about 5.3% of the company stock. Fengsheng Che, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Weicheng Guo, the CEO has 3.5% of the shares allocated to their name.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Sihuan Pharmaceutical Holdings Group

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Sihuan Pharmaceutical Holdings Group Ltd.. It has a market capitalization of just HK$22b, and insiders have HK$2.8b worth of shares in their own names. That's quite significant. 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 33% ownership, the general public have some degree of sway over Sihuan Pharmaceutical Holdings Group. 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.

Private Company Ownership

Our data indicates that Private Companies hold 51%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sihuan Pharmaceutical Holdings Group better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Sihuan Pharmaceutical Holdings Group .

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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