Public companies are CIMC Vehicles (Group) Co., Ltd.'s (HKG:1839) biggest owners and were rewarded after market cap rose by HK$888m last week

Key Insights

• CIMC Vehicles (Group)'s significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is China International Marine Containers (Group) Co., Ltd. with a 57% stake
• Institutional ownership in CIMC Vehicles (Group) is 16%

If you want to know who really controls CIMC Vehicles (Group) Co., Ltd. (HKG:1839), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit HK$20b market cap following a 7.3% gain in the stock.

Let's delve deeper into each type of owner of CIMC Vehicles (Group), beginning with the chart below.

View our latest analysis for CIMC Vehicles (Group)

What Does The Institutional Ownership Tell Us About CIMC Vehicles (Group)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

CIMC Vehicles (Group) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CIMC Vehicles (Group)'s earnings history below. Of course, the future is what really matters.

CIMC Vehicles (Group) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China International Marine Containers (Group) Co., Ltd. with 57% 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 4.5% and 3.5% 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 CIMC Vehicles (Group)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 data suggests that insiders own under 1% of CIMC Vehicles (Group) Co., Ltd. in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$60k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in CIMC Vehicles (Group). 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

We can see that Private Companies own 10%, of the shares on issue. 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.

Public Company Ownership

Public companies currently own 57% of CIMC Vehicles (Group) stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CIMC Vehicles (Group) better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for CIMC Vehicles (Group) you should be aware of, and 1 of them is a bit concerning.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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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.