Owning 68% in Central New Energy Holding Group Limited (HKG:1735) means that insiders are heavily invested in the company's future

Key Insights

• Significant insider control over Central New Energy Holding Group implies vested interests in company growth
• Zhuyun Yu owns 68% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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. We can see that individual insiders own the lion's share in the company with 68% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Central New Energy Holding Group regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Central New Energy Holding Group.

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?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. Alternatively, there might be something about the company that has kept institutional investors away. Central New Energy Holding Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Central New Energy Holding Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zhuyun Yu with 68% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. With 0.01% and 0.008% of the shares outstanding respectively, Yujuan Zhu and Dimensional Fund Advisors LP are the second and third largest shareholders.

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 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.

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.

Our information suggests that insiders own more than half of Central New Energy Holding Group Limited. This gives them effective control of the company. Insiders own HK$25b worth of shares in the HK$36b company. That's extraordinary! 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-- including retail investors -- own 32% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Central New Energy Holding Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Central New Energy Holding Group (of which 1 is significant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.