Hao Tian International Construction Investment Group Limited's (HKG:1341) largest shareholders are individual investors who were rewarded as market cap surged HK$457m last week

Key Insights

• The considerable ownership by individual investors in Hao Tian International Construction Investment Group indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 58% of the company
• Insiders own 22% of Hao Tian International Construction Investment Group

A look at the shareholders of Hao Tian International Construction Investment Group Limited (HKG:1341) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors were the biggest beneficiaries of last week’s 5.4% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Hao Tian International Construction Investment Group.

View our latest analysis for Hao Tian International Construction Investment Group

What Does The Lack Of Institutional Ownership Tell Us About Hao Tian International Construction Investment Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Hao Tian International Construction Investment Group, for yourself, below.

We note that hedge funds don't have a meaningful investment in Hao Tian International Construction Investment Group. Our data shows that Aceso Life Science Group Limited is the largest shareholder with 28% of shares outstanding. With 18% and 12% of the shares outstanding respectively, Yitai (Co., Ltd.) Hong Kong Co., Ltd. and Lin Yuan are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hao Tian International Construction Investment Group

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.

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.

It seems insiders own a significant proportion of Hao Tian International Construction Investment Group Limited. It is very interesting to see that insiders have a meaningful HK$2.0b stake in this HK$8.9b business. 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

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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 18%, of the Hao Tian International Construction Investment Group 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.

Public Company Ownership

We can see that public companies hold 28% of the Hao Tian International Construction Investment Group shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Hao Tian International Construction Investment Group that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.