Is the shareholding of China Youran Dairy Group Limited (HKG: 9858) biased in favor of insiders?
If you want to know who really controls China Youran Dairy Group Limited (HKG: 9858), then you will have to look at the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
China Youran Dairy Group is not huge, but neither is it particularly small. He has a market cap of HK $ 19 billion, which means he generally expects to see certain institutions listed in the share register. Looking at our data on ownership groups (below), it appears that institutions are not really present on the share register. Let’s take a closer look at what different types of shareholders can tell us about China Youran Dairy Group.
See our latest analysis for China Youran Dairy Group
What does institutional ownership tell us about the China Youran Dairy group?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Since establishments only own a small portion of China Youran Dairy Group, many may not have spent much time examining the inventory. But it is clear that some have; and they liked it enough to buy it. So if the business itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a sharp rise in stock prices if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings path below, but keep in mind that it’s the future that matters most.
China Youran Dairy Group is not owned by hedge funds. The main shareholder of the company is Inner Mongolia Yili Industrial Group Co., Ltd., with a 35% stake. Meanwhile, the second and third shareholders respectively hold 31% and 15% of the outstanding shares.
A more detailed study of the register of shareholders showed us that 2 of the main shareholders hold a considerable share of the ownership of the company, through their 66% stake.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of China Youran Dairy Group
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders have a significant stake in China Youran Dairy Group Limited. Insiders own HK $ 2.8 billion of shares in the HK $ 19 billion company. It is quite significant. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public owns 11% of the capital of China Youran Dairy Group. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private shareholders
Private equity firms hold a 31% stake in China Youran Dairy Group. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
Public enterprise ownership
It seems to us that state-owned enterprises own 35% of China Youran Dairy Group. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
Next steps:
While it is worth considering the different groups that own a business, there are other factors that are even more important. Concrete example: we have spotted 3 warning signs for China Youran Dairy Group you have to be aware of this, and one of them cannot be ignored.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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 shares 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 the mentioned stocks.
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