Stock Analysis

Could The Asia Paper Manufacturing.Co.,Ltd (KRX:002310) Ownership Structure Tell Us Something Useful?

KOSE:A002310
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A look at the shareholders of Asia Paper Manufacturing.Co.,Ltd (KRX:002310) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Asia Paper Manufacturing.Co.Ltd is a smaller company with a market capitalization of ₩411b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Asia Paper Manufacturing.Co.Ltd.

See our latest analysis for Asia Paper Manufacturing.Co.Ltd

ownership-breakdown
KOSE:A002310 Ownership Breakdown February 15th 2021

What Does The Institutional Ownership Tell Us About Asia Paper Manufacturing.Co.Ltd?

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 Asia Paper Manufacturing.Co.Ltd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Asia Paper Manufacturing.Co.Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
KOSE:A002310 Earnings and Revenue Growth February 15th 2021

Asia Paper Manufacturing.Co.Ltd is not owned by hedge funds. Our data shows that Asia Holdings Co., Ltd. is the largest shareholder with 47% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.8% and 4.3%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Asia Paper Manufacturing.Co.Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in Asia Paper Manufacturing.Co.,Ltd. In their own names, insiders own ₩7.7b worth of stock in the ₩411b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 35% ownership, the general public have some degree of sway over Asia Paper Manufacturing.Co.Ltd. 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

We can see that public companies hold 47% of the Asia Paper Manufacturing.Co.Ltd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Asia Paper Manufacturing.Co.Ltd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Asia Paper Manufacturing.Co.Ltd , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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. 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.
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