Guangzhou Great Power Energy and Technology Co., Ltd's (SZSE:300438) last week's 4.3% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in Guangzhou Great Power Energy and Technology indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 50% ownership
• 34% of Guangzhou Great Power Energy and Technology is held by insiders

To get a sense of who is truly in control of Guangzhou Great Power Energy and Technology Co., Ltd (SZSE:300438), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 34% came under pressure after market cap dropped to CN¥9.1b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of Guangzhou Great Power Energy and Technology, beginning with the chart below.

Check out our latest analysis for Guangzhou Great Power Energy and Technology

What Does The Institutional Ownership Tell Us About Guangzhou Great Power Energy and 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 Guangzhou Great Power Energy and Technology. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Guangzhou Great Power Energy and Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Guangzhou Great Power Energy and Technology. Looking at our data, we can see that the largest shareholder is Xin De Xia with 31% of shares outstanding. With 3.0% and 2.8% of the shares outstanding respectively, Zhaohui Liang and Heat (Qingdao) Private Fund Management Co., Ltd. are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Guangzhou Great Power Energy and 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.

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 insiders maintain a significant holding in Guangzhou Great Power Energy and Technology Co., Ltd. Insiders own CN¥3.1b worth of shares in the CN¥9.1b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangzhou Great Power Energy and Technology. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Guangzhou Great Power Energy and Technology better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Guangzhou Great Power Energy and Technology .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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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.

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