Nasdaq
華爾街日報Private companies in Yankuang Energy Group Company Limited (HKG:1171) are its biggest bettors, and their bets paid off as stock gained 9.0% last week
Key Insights
- Significant control over Yankuang Energy Group by private companies implies that the general public has more power to influence management and governance-related decisions
- Shan Dong Energy Group Co., Ltd. owns 53% of the company
- Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
Every investor in Yankuang Energy Group Company Limited (HKG:1171) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, private companies collectively scored the highest last week as the company hit HK$170b market cap following a 9.0% gain in the stock.
In the chart below, we zoom in on the different ownership groups of Yankuang Energy Group.
View our latest analysis for Yankuang Energy Group
What Does The Institutional Ownership Tell Us About Yankuang Energy Group?
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.
Yankuang Energy Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Yankuang Energy Group, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Yankuang Energy Group. Looking at our data, we can see that the largest shareholder is Shan Dong Energy Group Co., Ltd. with 53% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.6% and 1.4% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Yankuang Energy Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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 data suggests that insiders own under 1% of Yankuang Energy Group Company Limited in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own HK$74m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yankuang Energy Group. 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 54%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Yankuang Energy Group better, we need to consider many other factors. Take risks for example - Yankuang Energy Group has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
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.