Retail investors are Guangzhou Great Power Energy and Technology Co., Ltd's (SZSE:300438) biggest owners and were hit after market cap dropped CN¥674m

Key Insights

• Guangzhou Great Power Energy and Technology's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 21 investors have a majority stake in the company with 50% ownership
• Insider ownership in Guangzhou Great Power Energy and Technology is 34%

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. The group holding the most number of shares in the company, around 49% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 4.2% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 34% stock also took a hit.

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

View our latest analysis for Guangzhou Great Power Energy and Technology

What Does The Institutional Ownership Tell Us About Guangzhou Great Power Energy and Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Guangzhou Great Power Energy and Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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.

We note that hedge funds don't have a meaningful investment in Guangzhou Great Power Energy and Technology. Xin De Xia is currently the company's largest shareholder with 31% of shares outstanding. With 2.9% 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.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 21 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

It seems insiders own a significant proportion of Guangzhou Great Power Energy and Technology Co., Ltd. It is very interesting to see that insiders have a meaningful CN¥5.2b stake in this CN¥15b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. 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 Guangzhou Great Power Energy and Technology better, we need to consider many other factors. Take risks for example - Guangzhou Great Power Energy and Technology has 1 warning sign we think you should be aware of.

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.