Yue Yuen Industrial (Holdings) Limited's (HKG:551) biggest owners are public companies who got richer after stock soared 4.3% last week

Key Insights

• The considerable ownership by public companies in Yue Yuen Industrial (Holdings) indicates that they collectively have a greater say in management and business strategy
• 51% of the company is held by a single shareholder (Pou Chen Corporation)
• Insiders have sold recently

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A look at the shareholders of Yue Yuen Industrial (Holdings) Limited (HKG:551) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies collectively scored the highest last week as the company hit HK$28b market cap following a 4.3% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Yue Yuen Industrial (Holdings).

Check out our latest analysis for Yue Yuen Industrial (Holdings)

What Does The Institutional Ownership Tell Us About Yue Yuen Industrial (Holdings)?

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.

As you can see, institutional investors have a fair amount of stake in Yue Yuen Industrial (Holdings). 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. 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 Yue Yuen Industrial (Holdings)'s earnings history below. Of course, the future is what really matters.

Yue Yuen Industrial (Holdings) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Pou Chen Corporation with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.0% and 2.0% of the shares outstanding respectively, Silchester International Investors LLP and The Vanguard Group, Inc. are the second and third largest shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Yue Yuen Industrial (Holdings)

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.

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 information suggests that Yue Yuen Industrial (Holdings) Limited insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$42m worth of shares. 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-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 51% of Yue Yuen Industrial (Holdings). This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. For instance, we've identified 1 warning sign for Yue Yuen Industrial (Holdings) that you should be aware of.

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.