GD Power Development Co.,Ltd's (SHSE:600795) biggest owners are private companies who got richer after stock soared 4.9% last week

Key Insights

• The considerable ownership by private companies in GD Power DevelopmentLtd indicates that they collectively have a greater say in management and business strategy
• 51% of the company is held by a single shareholder (CHN ENERGY Investment Group Co.,LTD)
• 18% of GD Power DevelopmentLtd is held by Institutions

To get a sense of who is truly in control of GD Power Development Co.,Ltd (SHSE:600795), it is important to understand the ownership structure of the business. With 52% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥4.3b last week.

Let's take a closer look to see what the different types of shareholders can tell us about GD Power DevelopmentLtd.

Check out our latest analysis for GD Power DevelopmentLtd

What Does The Institutional Ownership Tell Us About GD Power DevelopmentLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that GD Power DevelopmentLtd does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see GD Power DevelopmentLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in GD Power DevelopmentLtd. The company's largest shareholder is CHN ENERGY Investment Group Co.,LTD, with ownership of 51%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. China Securities Finance Corp, Asset Management Arm is the second largest shareholder owning 5.0% of common stock, and Central Huijin Asset Management Ltd. holds about 1.2% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of GD Power DevelopmentLtd

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over GD Power DevelopmentLtd. 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.

Private Company Ownership

It seems that Private Companies own 52%, of the GD Power DevelopmentLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand GD Power DevelopmentLtd better, we need to consider many other factors. Be aware that GD Power DevelopmentLtd is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.