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Following Recent Decline, Hygeia Healthcare Holdings Co., Limited's (HKG:6078) Top Shareholder CEO Yiwen Zhu Sees Holdings Value Drop by 10%

Simply Wall St ·  Nov 15, 2024 11:42

Key Insights

  • Insiders appear to have a vested interest in Hygeia Healthcare Holdings' growth, as seen by their sizeable ownership
  • 55% of the business is held by the top 3 shareholders
  • Institutions own 32% of Hygeia Healthcare Holdings

If you want to know who really controls Hygeia Healthcare Holdings Co., Limited (HKG:6078), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 10%.

Let's delve deeper into each type of owner of Hygeia Healthcare Holdings, beginning with the chart below.

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SEHK:6078 Ownership Breakdown November 15th 2024

What Does The Institutional Ownership Tell Us About Hygeia Healthcare Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Hygeia Healthcare 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hygeia Healthcare Holdings' earnings history below. Of course, the future is what really matters.

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SEHK:6078 Earnings and Revenue Growth November 15th 2024

Hygeia Healthcare Holdings is not owned by hedge funds. The company's CEO Yiwen Zhu is the largest shareholder with 45% of shares outstanding. The second and third largest shareholders are Fidelity International Ltd and E Fund Management Co., Ltd., with an equal amount of shares to their name at 5.0%.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Hygeia Healthcare Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of Hygeia Healthcare Holdings Co., Limited. It has a market capitalization of just HK$11b, and insiders have HK$4.9b worth of shares in their own names. That's quite significant. 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-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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