Cofco Sugar Holding CO.,LTD.'s (SHSE:600737) largest shareholders are private companies with 51% ownership, individual investors own 39%

Simply Wall St · 08/30 22:57

Key Insights

  • Significant control over Cofco Sugar HoldingLTD by private companies implies that the general public has more power to influence management and governance-related decisions
  • The largest shareholder of the company is COFCO Corporation with a 51% stake
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Cofco Sugar Holding CO.,LTD. (SHSE:600737), then you'll have to look at the makeup of its share registry. With 51% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 39% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Cofco Sugar HoldingLTD.

Check out our latest analysis for Cofco Sugar HoldingLTD

ownership-breakdown
SHSE:600737 Ownership Breakdown August 30th 2024

What Does The Institutional Ownership Tell Us About Cofco Sugar HoldingLTD?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Cofco Sugar HoldingLTD does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cofco Sugar HoldingLTD's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SHSE:600737 Earnings and Revenue Growth August 30th 2024

Hedge funds don't have many shares in Cofco Sugar HoldingLTD. Looking at our data, we can see that the largest shareholder is COFCO Corporation with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 0.8% and 0.6%, of the shares outstanding, respectively.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Cofco Sugar HoldingLTD

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 information suggests that Cofco Sugar Holding CO.,LTD. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥209k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cofco Sugar HoldingLTD. 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

Our data indicates that Private Companies hold 51%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. To that end, you should learn about the 2 warning signs we've spotted with Cofco Sugar HoldingLTD (including 1 which is potentially serious) .

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.