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Individual Investors Who Hold 49% of Yorhe Fluid Intelligent Control Co., Ltd. (SZSE:002795) Gained 12%, Insiders Profited as Well

Simply Wall St ·  Aug 31, 2023 18:38

Key Insights

  • Yorhe Fluid Intelligent Control's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 13 investors have a majority stake in the company with 50% ownership
  • Insider ownership in Yorhe Fluid Intelligent Control is 49%

A look at the shareholders of Yorhe Fluid Intelligent Control Co., Ltd. (SZSE:002795) can tell us which group is most powerful. With 49% 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).

Individual investors gained the most after market cap touched CN¥3.8b last week, while insiders who own 49% also benefitted.

Let's delve deeper into each type of owner of Yorhe Fluid Intelligent Control, beginning with the chart below.

Check out our latest analysis for Yorhe Fluid Intelligent Control

ownership-breakdown
SZSE:002795 Ownership Breakdown August 31st 2023

What Does The Institutional Ownership Tell Us About Yorhe Fluid Intelligent Control?

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 Yorhe Fluid Intelligent Control, 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.

earnings-and-revenue-growth
SZSE:002795 Earnings and Revenue Growth August 31st 2023

We note that hedge funds don't have a meaningful investment in Yorhe Fluid Intelligent Control. The company's largest shareholder is Deli Cao, with ownership of 18%. In comparison, the second and third largest shareholders hold about 7.3% and 5.5% of the stock. Additionally, the company's CEO Zhongdong Xian directly holds 0.6% of the total shares outstanding.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. 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 Yorhe Fluid Intelligent Control

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own a reasonable proportion of Yorhe Fluid Intelligent Control Co., Ltd.. It has a market capitalization of just CN¥3.8b, and insiders have CN¥1.8b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Yorhe Fluid Intelligent Control (1 can't be ignored!) that you should be aware of before investing here.

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.

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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