The share price of China Suntien Green Energy Corporation Limited (HKG:956) fell 7.4% last week; private companies would not be happy
Every investor in China Suntien Green Energy Corporation Limited (HKG:956) must know the most powerful shareholder groups. The group with the largest number of shares in the company, around 50% to be precise, are private companies. In other words, the group faces the maximum upside potential (or downside risk).
As a result, private companies as a group suffered the highest losses last week after the market capitalization plummeted by HK$1.2 billion.
Let’s take a closer look at what different types of shareholders can tell us about China Suntien Green Energy.
See our latest analysis for China Suntien Green Energy
What does institutional ownership tell us about China Suntien Green Energy?
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.
China Suntien Green Energy already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of China Suntien Green Energy below. Of course, the future is what really matters.
Hedge funds don’t have a lot of shares in China Suntien Green Energy. The company’s largest shareholder is Hebei Province Construction & Investment Group Co., Ltd., with a 49% stake. GIC Private Limited is the second largest shareholder with 3.5% of the common stock and BlackRock, Inc. owns approximately 2.6% of the company’s stock.
A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 53% stake.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider ownership of China Suntien Green Energy
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that China Suntien Green Energy Corporation Limited insiders own less than 1% of the company. However, insiders may have an indirect interest through a more complex structure. Keep in mind this is a big company and insiders hold HK$1.4 million worth of shares. The absolute value can be more important than the proportional share. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.
General public property
With a 30% stake, the general public, consisting mainly of individual investors, has some influence over China Suntien Green Energy. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private Company Ownership
Our data indicates that private companies own 50% of the shares of society. 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.
While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – China Suntien Green Energy has 3 warning signs (and 1 that can’t be ignored) that we think you should know about.
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
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.
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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.