Public companies among China Greenland Broad Greenstate Group Company Limited's (HKG:1253) largest stockholders and were hit after last week's 10% price drop

By
Simply Wall St
Published
November 23, 2021
SEHK:1253
Source: Shutterstock

Every investor in China Greenland Broad Greenstate Group Company Limited (HKG:1253) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 30% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders, who own 30% shares weren’t spared from last week’s HK$90m market cap drop, public companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of China Greenland Broad Greenstate Group, beginning with the chart below.

Check out our latest analysis for China Greenland Broad Greenstate Group

ownership-breakdown
SEHK:1253 Ownership Breakdown November 23rd 2021

What Does The Institutional Ownership Tell Us About China Greenland Broad Greenstate Group?

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 China Greenland Broad Greenstate Group does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of China Greenland Broad Greenstate Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SEHK:1253 Earnings and Revenue Growth November 23rd 2021

China Greenland Broad Greenstate Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zhengping Wu with 30% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 30% and 9.2%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 59% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 China Greenland Broad Greenstate Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 most recent data indicates that insiders own a reasonable proportion of China Greenland Broad Greenstate Group Company Limited. Insiders own HK$236m worth of shares in the HK$796m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over China Greenland Broad Greenstate 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 9.2%, of the China Greenland Broad Greenstate 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.

Public Company Ownership

It appears to us that public companies own 30% of China Greenland Broad Greenstate Group. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand China Greenland Broad Greenstate Group better, we need to consider many other factors. Be aware that China Greenland Broad Greenstate Group is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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.

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