- Hong Kong
Private companies are Shenzhen International Holdings Limited's (HKG:152) biggest owners and were rewarded after market cap rose by HK$692m last week
- Significant control over Shenzhen International Holdings by private companies implies that the general public has more power to influence management and governance-related decisions
- A total of 2 investors have a majority stake in the company with 53% ownership
- 23% of Shenzhen International Holdings is held by Institutions
A look at the shareholders of Shenzhen International Holdings Limited (HKG:152) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, private companies were the biggest beneficiaries of last week’s 4.1% gain.
Let's delve deeper into each type of owner of Shenzhen International Holdings, beginning with the chart below.
View our latest analysis for Shenzhen International Holdings
What Does The Institutional Ownership Tell Us About Shenzhen International 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.
Shenzhen International 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. 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 Shenzhen International Holdings' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Shenzhen International Holdings. Shenzhen Investment Management Corporation is currently the largest shareholder, with 44% of shares outstanding. UBS Asset Management is the second largest shareholder owning 8.3% of common stock, and Hermes Investment Management Limited holds about 4.6% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 Shenzhen International 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.
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 less than 1% of Shenzhen International Holdings Limited. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it's a big company, and the insiders own HK$278k worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 33% stake in Shenzhen International 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.
Private Company Ownership
It seems that Private Companies own 44%, of the Shenzhen International Holdings stock. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen International Holdings better, we need to consider many other factors. Take risks for example - Shenzhen International Holdings has 4 warning signs (and 1 which can't be ignored) we think you should know about.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
Shenzhen International Holdings
Shenzhen International Holdings Limited, an investment holding company, invests in, constructs, and operates logistic infrastructure facilities primarily in the People’s Republic of China.
Undervalued average dividend payer.