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Super Hi International Holding Ltd.'s (HKG:9658) Market Cap Touched HK$8.6b Last Week, Benefiting Both Individual Investors Who Own 34% as Well as Institutions

Simply Wall St ·  Apr 25 21:05

Key Insights

  • Super Hi International Holding's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 2 investors have a majority stake in the company with 60% ownership
  • Institutional ownership in Super Hi International Holding is 34%

Every investor in Super Hi International Holding Ltd. (HKG:9658) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 34% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched HK$8.6b last week, while institutions who own 34% also benefitted.

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

ownership-breakdown
SEHK:9658 Ownership Breakdown April 26th 2024

What Does The Institutional Ownership Tell Us About Super Hi International Holding?

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.

Super Hi International Holding 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. 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 Super Hi International Holding's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:9658 Earnings and Revenue Growth April 26th 2024

We note that hedge funds don't have a meaningful investment in Super Hi International Holding. Our data shows that UBS Asset Management AG is the largest shareholder with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 29% and 2.7% of the stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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

Insider Ownership Of Super Hi International Holding

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.

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.

We can report that insiders do own shares in Super Hi International Holding Ltd.. The insiders have a meaningful stake worth HK$237m. Most would see this as a real positive. 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 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Super Hi International Holding. 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 29%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. For example, we've discovered 1 warning sign for Super Hi International Holding that you should be aware of before investing here.

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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