Could The Xi’an Haitian Antenna Technologies Co., Ltd. (HKG:8227) Ownership Structure Tell Us Something Useful?

If you want to know who really controls Xi’an Haitian Antenna Technologies Co., Ltd. (HKG:8227), 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. Warren Buffett said that he likes “a business with enduring competitive advantages that is run by able and owner-oriented people.” So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Xi’an Haitian Antenna Technologies is a smaller company with a market capitalization of HK$4.2b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about Xi’an Haitian Antenna Technologies.

See our latest analysis for Xi’an Haitian Antenna Technologies

ownership-breakdown
SEHK:8227 Ownership Breakdown September 26th 2020

What Does The Lack Of Institutional Ownership Tell Us About Xi’an Haitian Antenna Technologies?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Xi’an Haitian Antenna Technologies might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

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SEHK:8227 Earnings and Revenue Growth September 26th 2020

Hedge funds don’t have many shares in Xi’an Haitian Antenna Technologies. Our data shows that Xi’an Tian An Investment Company Limited is the largest shareholder with 17% of shares outstanding. With 12% and 8.3% of the shares outstanding respectively, Shanghai Gaoxiang Investment Management Company Limited and Xi’an Xiao’s Antenna Technologies Co., Ltd. are the second and third largest shareholders.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Xi’an Haitian Antenna Technologies

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.

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 Xi’an Haitian Antenna Technologies Co., Ltd.. Insiders own HK$423m worth of shares in the HK$4.2b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public have some degree of sway over Xi’an Haitian Antenna Technologies. 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.

Private Company Ownership

Our data indicates that Private Companies hold 55%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 5.3% of Xi’an Haitian Antenna Technologies stock. 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. Like risks, for instance. Every company has them, and we’ve spotted 4 warning signs for Xi’an Haitian Antenna Technologies (of which 1 is significant!) you should know about.

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.

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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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