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China International Marine Containers (Group) Co., Ltd.'s (SZSE:000039) Stock Price Dropped 3.7% Last Week; Individual Investors Would Not Be Happy

Simply Wall St ·  Sep 21, 2022 20:15

If you want to know who really controls China International Marine Containers (Group) Co., Ltd. (SZSE:000039), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 31% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors as a group endured the highest losses last week after market cap fell by CN¥1.6b.

Let's take a closer look to see what the different types of shareholders can tell us about China International Marine Containers (Group).

Check out our latest analysis for China International Marine Containers (Group)

ownership-breakdownSZSE:000039 Ownership Breakdown September 22nd 2022

What Does The Institutional Ownership Tell Us About China International Marine Containers (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.

As you can see, institutional investors have a fair amount of stake in China International Marine Containers (Group). This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of China International Marine Containers (Group), (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthSZSE:000039 Earnings and Revenue Growth September 22nd 2022

We note that hedge funds don't have a meaningful investment in China International Marine Containers (Group). The company's largest shareholder is Shenzhen Capital Operation Group Co.,Ltd., with ownership of 30%. With 24% and 5.5% of the shares outstanding respectively, China Merchants Port Holdings Company Limited and Citic-Prudential Life Insurance Co., Ltd, Asset Management Arm are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of China International Marine Containers (Group)

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.

Our data suggests that insiders own under 1% of China International Marine Containers (Group) Co., Ltd. in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥278m 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, who are usually individual investors, hold a 31% stake in China International Marine Containers (Group). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 30%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Public Company Ownership

Public companies currently own 26% of China International Marine Containers (Group) stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand China International Marine Containers (Group) better, we need to consider many other factors. For instance, we've identified 3 warning signs for China International Marine Containers (Group) that you should be aware of.

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. 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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