Stock Analysis

Individual investors are Jutal Offshore Oil Services Limited's (HKG:3303) biggest owners and were rewarded after market cap rose by HK$107m last week

SEHK:3303
Source: Shutterstock

Key Insights

  • Significant control over Jutal Offshore Oil Services by individual investors implies that the general public has more power to influence management and governance-related decisions
  • The top 3 shareholders own 57% of the company
  • 29% of Jutal Offshore Oil Services is held by insiders

Every investor in Jutal Offshore Oil Services Limited (HKG:3303) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 35% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, individual investors benefitted the most after the company's market cap rose by HK$107m last week.

Let's delve deeper into each type of owner of Jutal Offshore Oil Services, beginning with the chart below.

View our latest analysis for Jutal Offshore Oil Services

ownership-breakdown
SEHK:3303 Ownership Breakdown April 17th 2024

What Does The Institutional Ownership Tell Us About Jutal Offshore Oil Services?

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.

We can see that Jutal Offshore Oil Services 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 Jutal Offshore Oil Services' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:3303 Earnings and Revenue Growth April 17th 2024

We note that hedge funds don't have a meaningful investment in Jutal Offshore Oil Services. Beijing Haixin Energy Technology Co.,Ltd. is currently the company's largest shareholder with 30% of shares outstanding. With 19% and 7.6% of the shares outstanding respectively, Lishan Wang and Chunyim Lo are the second and third largest shareholders. Lishan Wang, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Yunsheng Cao directly holds 1.3% of the total shares outstanding.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

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. 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 Jutal Offshore Oil Services

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

It seems insiders own a significant proportion of Jutal Offshore Oil Services Limited. Insiders have a HK$337m stake in this HK$1.2b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jutal Offshore Oil Services. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 30% of Jutal Offshore Oil Services. 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:

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. Case in point: We've spotted 2 warning signs for Jutal Offshore Oil Services you should be aware of, and 1 of them is significant.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Jutal Offshore Oil Services is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Simply Wall St

Simply Wall St

About SEHK:3303

Jutal Offshore Oil Services

Jutal Offshore Oil Services Limited, an investment holding company, engages in the fabrication of facilities and provision of integrated services for oil and gas, new energy, and refining and chemical industries.

Flawless balance sheet and good value.