Chengdu Haoneng Technology Co., Ltd. (SHSE:603809) adds CN¥634m in market cap and insiders have a 47% stake in that gain

Key Insights

• Significant insider control over Chengdu Haoneng Technology implies vested interests in company growth
• 52% of the business is held by the top 9 shareholders
• Institutions own 15% of Chengdu Haoneng Technology

A look at the shareholders of Chengdu Haoneng Technology Co., Ltd. (SHSE:603809) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥634m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Chengdu Haoneng Technology.

See our latest analysis for Chengdu Haoneng Technology

What Does The Institutional Ownership Tell Us About Chengdu Haoneng Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Chengdu Haoneng Technology. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Chengdu Haoneng Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Chengdu Haoneng Technology. The company's largest shareholder is Chao Dong Xiang, with ownership of 18%. With 6.9% and 6.8% of the shares outstanding respectively, Ying Chao Xu and Xing Xing Xiang are the second and third largest shareholders. Additionally, the company's CEO Zhang Yong directly holds 2.9% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Chengdu Haoneng Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Chengdu Haoneng Technology Co., Ltd.. It has a market capitalization of just CN¥4.7b, and insiders have CN¥2.2b worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Chengdu Haoneng Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Chengdu Haoneng Technology better, we need to consider many other factors. For instance, we've identified 2 warning signs for Chengdu Haoneng Technology that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.