Key Insights

• Insiders appear to have a vested interest in Hebei Yangyuan ZhiHui Beverage's growth, as seen by their sizeable ownership
• 59% of the business is held by the top 4 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Hebei Yangyuan ZhiHui Beverage Co., Ltd. (SHSE:603156) can tell us which group is most powerful. With 52% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of Hebei Yangyuan ZhiHui Beverage have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.

Let's delve deeper into each type of owner of Hebei Yangyuan ZhiHui Beverage, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Hebei Yangyuan ZhiHui Beverage?

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.

Since institutions own only a small portion of Hebei Yangyuan ZhiHui Beverage, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in Hebei Yangyuan ZhiHui Beverage. Looking at our data, we can see that the largest shareholder is Kuizhang Yao with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 9.9%, of the shares outstanding, respectively. Hongbing Li, who is the third-largest shareholder, also happens to hold the title of Chairman of Corporate Board. Additionally, the company's CEO Zhaolin Fan directly holds 9.9% of the total shares outstanding.

Our research also brought to light the fact that roughly 59% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Hebei Yangyuan ZhiHui Beverage

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Hebei Yangyuan ZhiHui Beverage Co., Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥27b, that means insiders have a whopping CN¥14b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hebei Yangyuan ZhiHui Beverage. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 18%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Hebei Yangyuan ZhiHui Beverage is showing 2 warning signs in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com