Stock Analysis

Geely Automobile Holdings Limited's (HKG:175) largest shareholders are individual investors with 41% ownership, private companies own 40%

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Key Insights

  • Geely Automobile Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 9 investors have a majority stake in the company with 50% ownership
  • 17% of Geely Automobile Holdings is held by Institutions

Every investor in Geely Automobile Holdings Limited (HKG:175) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 41% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And private companies on the other hand have a 40% ownership in the company.

Let's delve deeper into each type of owner of Geely Automobile Holdings, beginning with the chart below.

Check out our latest analysis for Geely Automobile Holdings

SEHK:175 Ownership Breakdown March 17th 2023

What Does The Institutional Ownership Tell Us About Geely Automobile Holdings?

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.

As you can see, institutional investors have a fair amount of stake in Geely Automobile Holdings. 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 Geely Automobile Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:175 Earnings and Revenue Growth March 17th 2023

We note that hedge funds don't have a meaningful investment in Geely Automobile Holdings. Zhejiang Geely Holding Group Co.,Ltd. is currently the company's largest shareholder with 40% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.2% and 2.1%, of the shares outstanding, respectively. Shu Fu Li, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Geely Automobile Holdings

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders do own shares in Geely Automobile Holdings Limited. It is a very large company, and board members collectively own HK$2.4b worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 40%, of the company's shares. 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 Geely Automobile Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Geely Automobile Holdings you should know about.

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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