Inner Mongolia MengDian HuaNeng Thermal Power Corporation Limited's (SHSE:600863) top owners are private companies with 52% stake, while 37% is held by individual investors

Key Insights

• The considerable ownership by private companies in Inner Mongolia MengDian HuaNeng Thermal Power indicates that they collectively have a greater say in management and business strategy
• China Huaneng Group Co., Ltd. owns 51% of the company
• Institutional ownership in Inner Mongolia MengDian HuaNeng Thermal Power is 11%

If you want to know who really controls Inner Mongolia MengDian HuaNeng Thermal Power Corporation Limited (SHSE:600863), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 37% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Inner Mongolia MengDian HuaNeng Thermal Power.

Check out our latest analysis for Inner Mongolia MengDian HuaNeng Thermal Power

What Does The Institutional Ownership Tell Us About Inner Mongolia MengDian HuaNeng Thermal Power?

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.

As you can see, institutional investors have a fair amount of stake in Inner Mongolia MengDian HuaNeng Thermal Power. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Inner Mongolia MengDian HuaNeng Thermal Power, (below). Of course, keep in mind that there are other factors to consider, too.

Inner Mongolia MengDian HuaNeng Thermal Power is not owned by hedge funds. Our data shows that China Huaneng Group Co., Ltd. is the largest shareholder with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 2.0% and 0.9% of the stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Inner Mongolia MengDian HuaNeng Thermal Power

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Inner Mongolia MengDian HuaNeng Thermal Power. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 52%, of the Inner Mongolia MengDian HuaNeng Thermal Power stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Inner Mongolia MengDian HuaNeng Thermal Power 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.

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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.