Employee share scheme are Ju Teng International Holdings Limited's (HKG:3336) biggest owners and were rewarded after market cap rose by HK$152m last week
Key Insights
- Significant control over Ju Teng International Holdings by employee share scheme implies that the general public has more power to influence management and governance-related decisions
- A total of 2 investors have a majority stake in the company with 78% ownership
- Insiders have been selling lately
A look at the shareholders of Ju Teng International Holdings Limited (HKG:3336) can tell us which group is most powerful. We can see that employee share scheme own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, employee share scheme collectively scored the highest last week as the company hit HK$1.5b market cap following a 11% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Ju Teng International Holdings.
Check out our latest analysis for Ju Teng International Holdings
What Does The Institutional Ownership Tell Us About Ju Teng International Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Institutions have a very small stake in Ju Teng International Holdings. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.
We note that hedge funds don't have a meaningful investment in Ju Teng International Holdings. The company's largest shareholder is Juteng International Holdings Ltd., ESOP, with ownership of 42%. Southern Asia Management Limited is the second largest shareholder owning 36% of common stock, and Li-Yu Cheng holds about 3.6% of the company stock. Li-Yu Cheng, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
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. 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 Ju Teng International Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Ju Teng International Holdings Limited. In their own names, insiders own HK$96m worth of stock in the HK$1.5b company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ju Teng 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.
Private Company Ownership
It seems that Private Companies own 36%, of the Ju Teng International Holdings stock. 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Ju Teng International Holdings (including 1 which is significant) .
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.
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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.