Public companies invested in CIMC Enric Holdings Limited (HKG:3899) copped the brunt of last week's HK$527m market cap decline

Key Insights

• The considerable ownership by public companies in CIMC Enric Holdings indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is China International Marine Containers (Group) Co., Ltd. with a 68% stake
• 12% of CIMC Enric Holdings is held by Institutions

Every investor in CIMC Enric Holdings Limited (HKG:3899) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 68% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to HK$13b last week, public companies would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about CIMC Enric Holdings.

View our latest analysis for CIMC Enric Holdings

What Does The Institutional Ownership Tell Us About CIMC Enric Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that CIMC Enric Holdings does have institutional investors; and they hold a good portion of the company's stock. 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 Enric Holdings' earnings history below. Of course, the future is what really matters.

CIMC Enric Holdings is not owned by hedge funds. China International Marine Containers (Group) Co., Ltd. is currently the largest shareholder, with 68% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.3% and 1.2% of the shares outstanding respectively, Rosefinch Fund Management Co., Ltd. and The Vanguard Group, Inc. 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of CIMC Enric Holdings

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

Our information suggests that CIMC Enric Holdings Limited insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$47m worth of shares (at current prices). 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

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CIMC Enric Holdings. 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.

Public Company Ownership

It appears to us that public companies own 68% of CIMC Enric Holdings. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for CIMC Enric Holdings you should be aware of.

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.