Central New Energy Holding Group Limited's (HKG:1735) CEO Zhuyun Yu is the most upbeat insider, and their holdings increased by 3.6% last week

Key Insights

• Central New Energy Holding Group's significant insider ownership suggests inherent interests in company's expansion
• 68% of the company is held by a single shareholder (Zhuyun Yu)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Central New Energy Holding Group Limited (HKG:1735), then you'll have to look at the makeup of its share registry. With 68% stake, individual insiders 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, insiders benefitted the most after the company's market cap rose by HK$845m last week.

Let's delve deeper into each type of owner of Central New Energy Holding Group, beginning with the chart below.

View our latest analysis for Central New Energy Holding Group

What Does The Lack Of Institutional Ownership Tell Us About Central New Energy Holding 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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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 Central New Energy Holding Group, for yourself, below.

Central New Energy Holding Group is not owned by hedge funds. With a 68% stake, CEO Zhuyun Yu is the largest shareholder. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Meanwhile, the second and third largest shareholders, hold 0.09% and 0.01%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Yujuan Zhu is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Central New Energy Holding Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 that insiders own more than half the Central New Energy Holding Group Limited stock. This gives them a lot of power. That means insiders have a very meaningful HK$17b stake in this HK$24b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Central New Energy Holding Group. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Central New Energy Holding Group (including 1 which is a bit concerning) .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.