Daehan Flour Mills Co.,Ltd's (KRX:001130) largest shareholders are retail investors who were rewarded as market cap surged ₩28b last week

Key Insights

• The considerable ownership by retail investors in Daehan Flour MillsLtd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 8 shareholders
• 13% of Daehan Flour MillsLtd is held by insiders

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To get a sense of who is truly in control of Daehan Flour Mills Co.,Ltd (KRX:001130), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by ₩28b last week.

In the chart below, we zoom in on the different ownership groups of Daehan Flour MillsLtd.

See our latest analysis for Daehan Flour MillsLtd

What Does The Institutional Ownership Tell Us About Daehan Flour MillsLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Daehan Flour MillsLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Daehan Flour MillsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Daehan Flour MillsLtd is not owned by hedge funds. DNB Co., Ltd. is currently the largest shareholder, with 28% of shares outstanding. With 7.1% and 5.1% of the shares outstanding respectively, Geun-Young Lee and Harim Scholarship Foundation, Endowment Arm are the second and third largest shareholders. Geun-Young Lee, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Daehan Flour MillsLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own a reasonable proportion of Daehan Flour Mills Co.,Ltd. Insiders own ₩38b worth of shares in the ₩284b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 46% stake in the company, and hence can't 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.

Private Company Ownership

We can see that Private Companies own 30%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Daehan Flour MillsLtd , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.