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Individual Investors Own 31% of YTO Express Group Co.,Ltd. (SHSE:600233) Shares but Private Companies Control 45% of the Company

Simply Wall St ·  Feb 19 21:13

Key Insights

  • Significant control over YTO Express GroupLtd by private companies implies that the general public has more power to influence management and governance-related decisions
  • 50% of the business is held by the top 3 shareholders
  • Institutional ownership in YTO Express GroupLtd is 10%

If you want to know who really controls YTO Express Group Co.,Ltd. (SHSE:600233), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 45% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 31% ownership in the company.

Let's delve deeper into each type of owner of YTO Express GroupLtd, beginning with the chart below.

ownership-breakdown
SHSE:600233 Ownership Breakdown February 20th 2024

What Does The Institutional Ownership Tell Us About YTO Express GroupLtd?

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.

We can see that YTO Express GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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 YTO Express GroupLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:600233 Earnings and Revenue Growth February 20th 2024

YTO Express GroupLtd is not owned by hedge funds. Our data shows that Shanghai Yuantong Jiaolong Investment Development (Group) Co.,Ltd is the largest shareholder with 30% of shares outstanding. Hangzhou Haoyue Enterprise Management Co., Ltd. is the second largest shareholder owning 11% of common stock, and Hangzhou Ali Venture Capital Co., Ltd. holds about 9.1% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of YTO Express GroupLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in YTO Express Group Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥2.2b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over YTO Express GroupLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 9.1% stake in YTO Express GroupLtd. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 45%, of the shares on issue. 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:

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with YTO Express GroupLtd , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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