Private companies are CSSC Offshore & Marine Engineering (Group) Company Limited's (HKG:317) biggest owners and were hit after market cap dropped HK$1.2b

Key Insights

• Significant control over CSSC Offshore & Marine Engineering (Group) by private companies implies that the general public has more power to influence management and governance-related decisions
• 59% of the company is held by a single shareholder (China State Shipbuilding Corporation Limited)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of CSSC Offshore & Marine Engineering (Group) Company Limited (HKG:317), it is important to understand the ownership structure of the business. With 59% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 5.4% decline in share price, private companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about CSSC Offshore & Marine Engineering (Group).

View our latest analysis for CSSC Offshore & Marine Engineering (Group)

What Does The Institutional Ownership Tell Us About CSSC Offshore & Marine Engineering (Group)?

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.

CSSC Offshore & Marine Engineering (Group) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 CSSC Offshore & Marine Engineering (Group)'s earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in CSSC Offshore & Marine Engineering (Group). The company's largest shareholder is China State Shipbuilding Corporation Limited, with ownership of 59%. This implies that they have majority interest control of the future of the company. With 1.1% and 0.7% of the shares outstanding respectively, E Fund Management Co., Ltd. and China Southern Asset Management Co., Ltd. are the second and third largest 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of CSSC Offshore & Marine Engineering (Group)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in CSSC Offshore & Marine Engineering (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

It seems that Private Companies own 59%, of the CSSC Offshore & Marine Engineering (Group) stock. 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:

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 be aware of the 1 warning sign we've spotted with CSSC Offshore & Marine Engineering (Group) .

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.