Kingboard Laminates Holdings Limited's (HKG:1888) largest shareholders are public companies who were rewarded as market cap surged HK$1.4b last week

Key Insights

• Significant control over Kingboard Laminates Holdings by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Kingboard Holdings Limited with a 74% stake
• Recent sales by insiders

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If you want to know who really controls Kingboard Laminates Holdings Limited (HKG:1888), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 74% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit HK$29b market cap following a 4.9% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Kingboard Laminates Holdings.

View our latest analysis for Kingboard Laminates Holdings

What Does The Institutional Ownership Tell Us About Kingboard Laminates Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Kingboard Laminates Holdings. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Kingboard Laminates Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Kingboard Laminates Holdings. The company's largest shareholder is Kingboard Holdings Limited, with ownership of 74%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.7% of the shares outstanding, followed by an ownership of 1.4% by the third-largest shareholder.

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 Kingboard Laminates 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 Kingboard Laminates Holdings Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own HK$176m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Kingboard Laminates Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 74% of Kingboard Laminates Holdings stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. To that end, you should be aware of the 1 warning sign we've spotted with Kingboard Laminates Holdings .

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. 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.