Key Insights

• The considerable ownership by retail investors in Vitasoy International Holdings indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 14 shareholders
• 16% of Vitasoy International Holdings is held by insiders

To get a sense of who is truly in control of Vitasoy International Holdings Limited (HKG:345), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 43% 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 7.2% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 41% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Vitasoy International Holdings.

What Does The Institutional Ownership Tell Us About Vitasoy International Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Vitasoy International Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Vitasoy International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Vitasoy International Holdings. Looking at our data, we can see that the largest shareholder is First Sentier Investors (Australia) IM Ltd with 17% of shares outstanding. Yau-lai Lo is the second largest shareholder owning 9.4% of common stock, and K. S. Lo Foundation, Endowment Arm holds about 6.8% of the company stock. Yau-lai Lo, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Furthermore, CEO Roberto Guidetti is the owner of 0.6% of the company's shares.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 14 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Vitasoy International 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 Vitasoy International Holdings Limited. It has a market capitalization of just HK$6.5b, and insiders have HK$1.1b worth of shares in their own names. 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

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vitasoy International Holdings. 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. Case in point: We've spotted 1 warning sign for Vitasoy International Holdings you should be aware of.

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.