Public companies are Kingboard Laminates Holdings Limited's (HKG:1888) biggest owners and were rewarded after market cap rose by HK$2.6b last week

Key Insights

• Kingboard Laminates Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Kingboard Holdings Limited with a 71% stake
• Insiders have sold recently

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To get a sense of who is truly in control of Kingboard Laminates Holdings Limited (HKG:1888), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 71% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 7.2% gain.

Let's delve deeper into each type of owner of Kingboard Laminates Holdings, beginning with the chart below.

See our latest analysis for Kingboard Laminates Holdings

What Does The Institutional Ownership Tell Us About Kingboard Laminates 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 Kingboard Laminates Holdings. 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. 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 Kingboard Laminates Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Kingboard Laminates Holdings. The company's largest shareholder is Kingboard Holdings Limited, with ownership of 71%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Capital Research and Management Company is the second largest shareholder owning 5.7% of common stock, and Norges Bank Investment Management holds about 1.5% of the company stock.

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 Kingboard Laminates Holdings

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 less than 1% of Kingboard Laminates Holdings Limited. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$298m worth of shares (at current prices). 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 16% stake in Kingboard Laminates Holdings. 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 71% of the Kingboard Laminates Holdings shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Kingboard Laminates Holdings that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.