Key Insights
- The considerable ownership by individual investors in Peking University Resources (Holdings) indicates that they collectively have a greater say in management and business strategy
- A total of 5 investors have a majority stake in the company with 53% ownership
- Insider ownership in Peking University Resources (Holdings) is 36%
To get a sense of who is truly in control of Peking University Resources (Holdings) Company Limited (HKG:618), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 20% increase in the stock price last week, individual investors profited the most, but insiders who own 36% stock also stood to gain from the increase.
Let's take a closer look to see what the different types of shareholders can tell us about Peking University Resources (Holdings).
View our latest analysis for Peking University Resources (Holdings)
What Does The Institutional Ownership Tell Us About Peking University Resources (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.
Since institutions own only a small portion of Peking University Resources (Holdings), 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 company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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 Peking University Resources (Holdings). The company's largest shareholder is Ultra Founder International Ltd, with ownership of 18%. Zhuguang Huang is the second largest shareholder owning 12% of common stock, and Choon Gan Oh holds about 11% of the company stock. Zhuguang Huang, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.
Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Peking University Resources (Holdings)
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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 maintain a significant holding in Peking University Resources (Holdings) Company Limited. Insiders have a HK$290m stake in this HK$808m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 38% stake in Peking University Resources (Holdings). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 22%, 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. For instance, we've identified 2 warning signs for Peking University Resources (Holdings) (1 shouldn't be ignored) that you should be aware of.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.