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Individual Investors in Yangzijiang Shipbuilding (Holdings) Ltd. (SGX:BS6) Are Its Biggest Bettors, and Their Bets Paid off as Stock Gained 8.3% Last Week

Simply Wall St ·  Sep 16, 2022 03:30

If you want to know who really controls Yangzijiang Shipbuilding (Holdings) Ltd. (SGX:BS6), then you'll have to look at the makeup of its share registry. With 43% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors were the biggest beneficiaries of last week's 8.3% gain.

Let's delve deeper into each type of owner of Yangzijiang Shipbuilding (Holdings), beginning with the chart below.

See our latest analysis for Yangzijiang Shipbuilding (Holdings)

ownership-breakdownSGX:BS6 Ownership Breakdown September 16th 2022

What Does The Institutional Ownership Tell Us About Yangzijiang Shipbuilding (Holdings)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Yangzijiang Shipbuilding (Holdings). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Yangzijiang Shipbuilding (Holdings), (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthSGX:BS6 Earnings and Revenue Growth September 16th 2022

Hedge funds don't have many shares in Yangzijiang Shipbuilding (Holdings). YZJ Settlement Julius Baer Trust Company is currently the company's largest shareholder with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 10.0% and 8.1% of the stock. Additionally, the company's CEO Letian Ren directly holds 4.2% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Yangzijiang Shipbuilding (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.

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.

We can report that insiders do own shares in Yangzijiang Shipbuilding (Holdings) Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around S$176m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. 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 32%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Yangzijiang Shipbuilding (Holdings) better, we need to consider many other factors. For instance, we've identified 1 warning sign for Yangzijiang Shipbuilding (Holdings) that you should be aware of.

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.

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