A look at the shareholders of Hao Tian International Construction Investment Group Limited (HKG: 1341) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Hao Tian International Construction Investment Group is not a large corporation by global standards. It has a market cap of HK $ 3.7 billion, which means it wouldn’t get the attention of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Hao Tian International Construction Investment Group.
See our latest analysis for Hao Tian International Construction Investment Group
What does institutional ownership tell us about Hao Tian International Construction Investment Group?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that Hao Tian International Construction Investment Group has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Hao Tian International Construction Investment Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Hao Tian International Construction Investment Group. Looking at our data, we can see that the largest shareholder is Aceso Life Science Group Limited with 45% of the shares outstanding. In comparison, the second and third shareholders hold around 13% and 10.0% of the capital.
A more detailed study of the register of shareholders showed us that 2 of the major shareholders hold a considerable share of the ownership of the company, through their 58% stake.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider ownership of Hao Tian International Construction Investment Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
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 insiders hold a significant stake in Hao Tian International Construction Investment Group Limited. Insiders have a HK $ 1.2 billion stake in the HK $ 3.7 billion company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
With a 16% stake, the general public has some influence over Hao Tian International Construction Investment Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Public enterprise ownership
State-owned enterprises currently own 45% of the shares of Hao Tian International Construction Investment Group. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves further study.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Take risks for example – Hao Tian International Construction Investment Group has 5 warning signs (and 1 which is a bit disturbing) we think you should be aware of.
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NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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