To understand who truly controls Yonghe Medical Group Co., Ltd. (HKG:2279), it is important to understand the ownership structure of the business. The group with the largest shareholding in the company (about 39% to be exact) are individual insiders. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
Insiders also suffered the heaviest losses following last week’s 8.4% drop in stock prices.
Let’s take a closer look at each type of owner in Yonghe Medical Group, starting with the diagram below.
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What does institutional ownership tell us about Yonghe Medical Group?
Many financial institutions measure their performance against indices that approximate local markets. As such, they typically pay more attention to companies included in major indices.
Yonghe Medical Group already has a stock registry. In fact, they own a sizeable stake in the company. This may indicate that the company has some credibility in the investment community. However, caution should be exercised in relying on the validation that institutional investors assume. They get it wrong sometimes too. When shares are owned by multiple institutions, there is always the risk of getting into a “congested deal”. If such a deal goes wrong, multiple parties may compete to sell the stock fast. This risk is higher for companies with no history of growth. Yonghe Medical Group’s past revenues and earnings are listed below, but remember there’s always more to the story.
We point out that hedge funds have not made meaningful investments in Yonghe Medical Group.The company’s CEO, Yu Zhang, is the largest shareholder with 34% of the outstanding shares. The second and third largest shareholders are Beijing Panmao Investment Management Co., Ltd. and CITIC Private Equity Fund Management Co., Ltd., each holding his 17% stake equal to their names.
A more in-depth look at the shareholder register reveals that two of the top shareholders own 52% of the shares and have a significant amount of ownership in the company.
Researching institutional ownership of companies can add value to your research, but it’s also a good idea to research analyst recommendations to get a better understanding of the stock’s expected performance. . Quite a few analysts cover stocks, so it’s very easy to look up forecast growth.
Insider Ownership of Yonghe Medical Group
The definition of an insider may vary slightly from country to country, but board members are always important. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.
Most people view insider ownership positively because it can indicate that the board works well with other shareholders. However, in some cases, this group may be overly privileged.
Our latest data shows that insiders own a reasonable percentage of Yonghe Medical Group Co., Ltd. The company’s market capitalization is just his HK$4.4 billion and insiders own HK$1.7 billion worth of shares in his name. We can say that this shows alignment with shareholders, but it is worth noting that the company is still very small. Some insiders may have founded the business. Click here to see if those insiders are buying or selling.
The general public (mainly composed of private investors) with 18% ownership has some influence over Yonghe Medical Group. Ownership of this magnitude may not be enough to move policy decisions in their favor, but they can still collectively influence company policy.
Private equity ownership
With 35% ownership, the private equity firm is well positioned to play a role in shaping corporate strategy focused on value creation. Some may like this because private equity can be an activist to hold management accountable. But sometimes private equity is sold and the company goes public.
It’s always worth thinking about the different groups that own shares in the company. However, many other factors should be taken into account to better understand Yonghe Medical Group. for example, 1 Warning Signs of Yonghe Medical Group What you should know.
But in the end it’s the future, not the past will determine how well the owner of this business will do. Therefore, we encourage you to check out this free report that shows whether analysts are predicting a brighter future.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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find out if Yonghwa Medical Group You may be overestimated or underestimated by checking out our comprehensive analysis including: Fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …