Stock Analysis

Here's What Doosan Heavy Industries & Construction Co., Ltd.'s (KRX:034020) Shareholder Ownership Structure Looks Like

KOSE:A034020
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If you want to know who really controls Doosan Heavy Industries & Construction Co., Ltd. (KRX:034020), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of ₩5.0t, Doosan Heavy Industries & Construction is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Doosan Heavy Industries & Construction.

View our latest analysis for Doosan Heavy Industries & Construction

ownership-breakdown
KOSE:A034020 Ownership Breakdown January 21st 2021

What Does The Institutional Ownership Tell Us About Doosan Heavy Industries & Construction?

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.

We can see that Doosan Heavy Industries & Construction 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Doosan Heavy Industries & Construction's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSE:A034020 Earnings and Revenue Growth January 21st 2021

Doosan Heavy Industries & Construction is not owned by hedge funds. Doosan Corporation is currently the company's largest shareholder with 42% of shares outstanding. With 5.4% and 3.4% of the shares outstanding respectively, Doosan Heavy Industries & Construction Co. Ltd Employee Stock Ownership Association and National Pension Service are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Doosan Heavy Industries & Construction

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 Doosan Heavy Industries & Construction Co., Ltd. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₩30b worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 44% stake in the company, will not easily be ignored. 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

It appears to us that public companies own 42% of Doosan Heavy Industries & Construction. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Doosan Heavy Industries & Construction better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Doosan Heavy Industries & Construction (of which 1 can't be ignored!) 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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