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Individual Investors Who Hold 49% of Guangdong Create Century Intelligent Equipment Group Corporation Limited (SZSE:300083) Gained 8.2%, Insiders Profited as Well

Simply Wall St ·  Aug 23, 2022 00:35

A look at the shareholders of Guangdong Create Century Intelligent Equipment Group Corporation Limited (SZSE:300083) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched CN¥18b last week, while insiders who own 23% also benefitted.

Let's delve deeper into each type of owner of Guangdong Create Century Intelligent Equipment Group, beginning with the chart below.

View our latest analysis for Guangdong Create Century Intelligent Equipment Group

ownership-breakdownSZSE:300083 Ownership Breakdown August 23rd 2022

What Does The Institutional Ownership Tell Us About Guangdong Create Century Intelligent Equipment 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.

Guangdong Create Century Intelligent Equipment Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Guangdong Create Century Intelligent Equipment Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growthSZSE:300083 Earnings and Revenue Growth August 23rd 2022

We note that hedge funds don't have a meaningful investment in Guangdong Create Century Intelligent Equipment Group. The company's largest shareholder is Jun Xia, with ownership of 17%. National Council for Social Security Fund is the second largest shareholder owning 6.0% of common stock, and Jinhui International Enterprise Limited holds about 4.9% of the company stock.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Guangdong Create Century Intelligent Equipment Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own a reasonable proportion of Guangdong Create Century Intelligent Equipment Group Corporation Limited. It is very interesting to see that insiders have a meaningful CN¥4.2b stake in this CN¥18b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Guangdong Create Century Intelligent Equipment 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

We can see that Private Companies own 4.9%, of the shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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. 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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