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Golden Solar New Energy Technology Holdings Limited's (HKG:1121) Market Cap up HK$472m Last Week, Benefiting Both Individual Investors Who Own 47% as Well as Insiders

Simply Wall St ·  Mar 7 17:03

Key Insights

  • The considerable ownership by individual investors in Golden Solar New Energy Technology Holdings indicates that they collectively have a greater say in management and business strategy
  • A total of 7 investors have a majority stake in the company with 51% ownership
  • Insiders own 39% of Golden Solar New Energy Technology Holdings

Every investor in Golden Solar New Energy Technology Holdings Limited (HKG:1121) should be aware of the most powerful shareholder groups. With 47% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that reaped the most benefits after last week's 6.8% price gain, insiders also received a 39% cut.

Let's delve deeper into each type of owner of Golden Solar New Energy Technology Holdings, beginning with the chart below.

ownership-breakdown
SEHK:1121 Ownership Breakdown March 7th 2024

What Does The Institutional Ownership Tell Us About Golden Solar New Energy Technology Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Golden Solar New Energy Technology Holdings 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. 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 Golden Solar New Energy Technology Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SEHK:1121 Earnings and Revenue Growth March 7th 2024

Golden Solar New Energy Technology Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hsin-Wang Chiu with 14% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 9.6%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Golden Solar New Energy Technology Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership 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 in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Golden Solar New Energy Technology Holdings Limited. It has a market capitalization of just HK$6.9b, and insiders have HK$2.7b worth of shares in their own names. 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

The general public, who are usually individual investors, hold a 47% stake in Golden Solar New Energy Technology Holdings. 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

We can see that Private Companies own 6.1%, of the shares on issue. 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.

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 Golden Solar New Energy Technology Holdings you should be aware of.

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.

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.

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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