What does the ownership structure of Ziyuanyuan Holdings Group Limited (HKG: 8223) look like?
Every investor in Ziyuanyuan Holdings Group Limited (HKG: 8223) should know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
With a market cap of HK $ 888 million, Ziyuanyuan Holdings Group is a small-cap stock, so it may not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutions do not own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Ziyuanyuan Holdings Group.
Check out our latest analysis for Ziyuanyuan Holdings Group
What does the lack of institutional ownership tell us about the Ziyuanyuan Holdings group?
We don’t tend to see institutional investors owning stocks of very risky, lightly traded, or very small companies. While we sometimes see large companies without registered institutions, this is not particularly common.
There can be various reasons why no institution owns shares in a company. Typically, smaller newly listed companies do not attract much attention from fund managers, as it would not be possible for large fund managers to forge a meaningful position in the company. It is also possible that the fund managers do not own the stock because they are not convinced that it will perform well. Institutional investors may not find the company’s historical growth impressive, or there may be other factors at play. You can see for yourself the past earnings performance of Ziyuanyuan Holdings Group below.
Ziyuanyuan Holdings group does not belong to hedge funds. With a 55% stake, CEO Junshen Zhang is the largest shareholder. This essentially means that they have significant control over the bottom line or the future of the business, which is why insider ownership is generally viewed favorably by potential buyers. With a 20% stake, the second shareholder is Junwei Zhang
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. We do not see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider Ownership of Ziyuanyuan Holdings Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
It appears that insiders own more than half of the shares of Ziyuanyuan Holdings Group Limited. It gives them a lot of power. This means that they own shares worth HK $ 666 million in the HK $ 888 million company. It is quite significant. Most would be happy to see the board invest alongside them. You may wish to find out (free) whether they bought or sold.
General public property
With a 25% stake, the general public, consisting mainly of individual investors, has some influence over Ziyuanyuan Holdings Group. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Ziyuanyuan Holdings Group, there are many other factors that we need to consider. Concrete example: we have spotted 1 warning sign for the Ziyuanyuan Holdings group you must be aware.
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NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.