key insights
Every investor in China Merchants Property Operation & Service Co., Ltd. (SZSE:001914) should be aware of the most powerful shareholder groups. The group that owns the most shares in the company (around 59% to be exact) is privately held. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Private companies benefited the most from last week’s 4.7% price increase, but institutional investors also received a 20% cut.
Let’s take a closer look to see what different types of shareholders can tell us about China Merchants Property Operation & Service.
Check out the latest analysis on China Merchants’ real estate operations and services
SZSE:001914 Ownership breakdown October 28, 2024
What does institutional ownership tell us about Chinese merchant real estate operations and services?
Financial institutions typically measure themselves against a benchmark when reporting to their own investors, so they often see increased enthusiasm for a stock once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
We can see that China Merchants Property Operation & Service has institutional investors. And they own a significant portion of the company’s stock. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking China Merchants Property Operation & Service’s earnings history, below. Of course, what really matters is the future.
SZSE:001914 Earnings and Revenue Growth October 28, 2024
Note that hedge funds do not have meaningful investments in China Merchants Real Estate Operations and Services. According to our data, China Merchants Group Limited is the largest shareholder with 47% of shares outstanding. China Aviation Industry Corporation Co., Ltd. is the second largest shareholder with 11% of common stock, and Zhong Ou Fund Management Co., Ltd holds approximately 7.5% of the company’s stock.
On closer inspection, we found that the top two shareholders together control more than half of the company’s shares, suggesting that they have significant power to influence company decisions .
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 plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership of Chinese merchant real estate operations and services
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. Especially if the manager is the founder or CEO.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
Our data suggests that insiders own less than 1% of China Merchants Property Operations and Services Co., Ltd. shares in their own names. However, they may have an indirect stake through a corporate structure that we do not address. Since the company is a fairly large company, it is possible for board members to own a meaningful interest in the company without having to own a significant proportionate interest. In this case, they own approximately CN¥56,000 worth of shares (at current prices). Perhaps it’s important to consider recent buys and sells as well. You can click here to see if insiders have been buying or selling.
Open to the public
With a 19% ownership interest, the general public, consisting mainly of individual investors, has a certain degree of influence over China Merchants’ real estate operations and services. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Private company ownership
We can see that Private companies own 59% of the shares outstanding. It’s hard to draw any conclusions from this fact alone, so it’s worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.
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 China Merchants Real Estate Operations and Services you should be aware of.
After all, the future is what matters most. Access this free report on analyst forecasts for the company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
