A look at the shareholders of Yongsheng Advanced Materials Company Limited (HKG:3608) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Yongsheng Advanced Materials is not a large company by global standards. It has a market capitalization of HK$1.7b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about 3608.
View our latest analysis for Yongsheng Advanced Materials
What Does The Lack Of Institutional Ownership Tell Us About Yongsheng Advanced Materials?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Yongsheng Advanced Materials's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Yongsheng Advanced Materials is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Yongsheng Advanced Materials
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
It seems insiders own a significant proportion of Yongsheng Advanced Materials Company Limited. It has a market capitalization of just HK$1.7b, and insiders have HK$488m 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.