What kind of investors own the majority of China Conch Venture Holdings Limited (HKG: 586)?


If you want to know who really controls China Conch Venture Holdings Limited (HKG:586), then you need to look at the composition of its share register. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

China Conch Venture Holdings is quite a large company. It has a market capitalization of HK$30 billion. Normally, institutions own a significant share of a business of this size. Our analysis of company ownership, below, shows that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about China Conch Venture Holdings.

Check out our latest analysis for China Conch Venture Holdings

SEHK: 586 Ownership Breakdown July 10, 2022

What does institutional ownership tell us about China Conch Venture Holdings?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a sizeable share of China Conch Venture Holdings. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So, it is worth checking out the earnings history of China Conch Venture Holdings below. Of course, the future is what really matters.

SEHK: 586 Profit and Revenue Growth July 10, 2022

Hedge funds do not have many shares in China Conch Venture Holdings. abrdn plc is currently the company’s largest shareholder with 5.0% of the shares outstanding. Anhui Conch Cement Company Limited is the second largest shareholder with 4.9% of the common stock and BlackRock, Inc. owns approximately 4.9% of the company’s stock. Additionally, we found that Qinying Ji, the CEO, owns 1.9% of the shares attributed to his name.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of China Conch Venture Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Shareholders would likely be interested to learn that insiders hold shares of China Conch Venture Holdings Limited. Insiders have a significant stake worth HK$1.6 billion. Most would see this as a real positive. It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a substantial 51% stake in China Conch Venture Holdings, suggesting that it is quite a popular stock. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Private Company Ownership

Our data indicates that private companies hold 6.3% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Ownership of a public company

We understand that state-owned companies own 4.9% of China Conch Venture Holdings. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand China Conch Venture Holdings, we need to consider many other factors. Example: we have identified 3 warning signs for China Conch Venture Holdings you need to be aware of, and 1 of them should not be ignored.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.


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