Public companies are Kingboard Laminates Holdings Limited's (HKG:1888) biggest owners and were rewarded after market cap rose by HK$718m 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
• 74% of the company is held by a single shareholder (Kingboard Holdings Limited)
• Institutions own 12% of Kingboard Laminates Holdings

A look at the shareholders of Kingboard Laminates Holdings Limited (HKG:1888) can tell us which group is most powerful. The group holding the most number of shares in the company, around 74% to be precise, is public companies. 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$23b market cap following a 3.2% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Kingboard Laminates Holdings.

View our latest analysis for Kingboard Laminates Holdings

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

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.

We can see that Kingboard Laminates Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kingboard Laminates Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Kingboard Laminates Holdings. Kingboard Holdings Limited is currently the largest shareholder, with 74% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 5.7% and 1.3% of the shares outstanding respectively, Capital Research and Management Company and The Vanguard Group, Inc. are the second and third largest shareholders.

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. 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 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.

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 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$139m 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 13% stake in Kingboard Laminates 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.

Public Company Ownership

We can see that public companies hold 74% of the Kingboard Laminates 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.