Could The COSCO SHIPPING Energy Transportation Co., Ltd. (HKG:1138) Ownership Structure Tell Us Something Useful?

By
Simply Wall St
Published
July 24, 2021
SEHK:1138
Source: Shutterstock

If you want to know who really controls COSCO SHIPPING Energy Transportation Co., Ltd. (HKG:1138), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of HK$27b, COSCO SHIPPING Energy Transportation is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about COSCO SHIPPING Energy Transportation.

See our latest analysis for COSCO SHIPPING Energy Transportation

ownership-breakdown
SEHK:1138 Ownership Breakdown July 25th 2021

What Does The Institutional Ownership Tell Us About COSCO SHIPPING Energy Transportation?

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.

We can see that COSCO SHIPPING Energy Transportation 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. 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 COSCO SHIPPING Energy Transportation's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:1138 Earnings and Revenue Growth July 25th 2021

COSCO SHIPPING Energy Transportation is not owned by hedge funds. Our data shows that China COSCO SHIPPING Corporation Limited is the largest shareholder with 45% of shares outstanding. With 2.9% and 2.5% of the shares outstanding respectively, Lombarda China Fund Management Co., Ltd. and Fidelity International Ltd are the second and third largest shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of COSCO SHIPPING Energy Transportation

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 most recent data indicates that insiders own less than 1% of COSCO SHIPPING Energy Transportation Co., Ltd.. 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$34k 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 holds a 38% stake in COSCO SHIPPING Energy Transportation. 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 45%, of the COSCO SHIPPING Energy Transportation stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for COSCO SHIPPING Energy Transportation you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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. 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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