Could The Vitasoy International Holdings Limited (HKG:345) Ownership Structure Tell Us Something Useful?

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The big shareholder groups in Vitasoy International Holdings Limited (HKG:345) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Vitasoy International Holdings is a pretty big company. It has a market capitalization of HK$42b. Normally institutions would own a significant portion of a company this size. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about 345.

Check out our latest analysis for Vitasoy International Holdings

SEHK:345 Ownership Summary, May 1st 2019
SEHK:345 Ownership Summary, May 1st 2019

What Does The Institutional Ownership Tell Us About Vitasoy International 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 own 44% of Vitasoy International 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. 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 Vitasoy International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:345 Income Statement, May 1st 2019
SEHK:345 Income Statement, May 1st 2019

Hedge funds don't have many shares in Vitasoy International Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Vitasoy International Holdings

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 most recent data indicates that insiders own a reasonable proportion of Vitasoy International Holdings Limited. It is very interesting to see that insiders have a meaningful HK$8.1b stake in this HK$42b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 32% stake in 345. 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 4.6%, 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 Vitasoy International Holdings better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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