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Guangdong Yussen Energy Technology Co., Ltd.'s (SZSE:002986) Market Cap up CN¥538m Last Week, Benefiting Both Individual Investors Who Own 58% as Well as Insiders

Simply Wall St ·  Aug 22 21:59

Key Insights

  • The considerable ownership by individual investors in Guangdong Yussen Energy Technology indicates that they collectively have a greater say in management and business strategy
  • The top 25 shareholders own 42% of the company
  • Insider ownership in Guangdong Yussen Energy Technology is 32%

A look at the shareholders of Guangdong Yussen Energy Technology Co., Ltd. (SZSE:002986) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched CN¥4.3b last week, while insiders who own 32% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Yussen Energy Technology.

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SZSE:002986 Ownership Breakdown August 23rd 2024

What Does The Institutional Ownership Tell Us About Guangdong Yussen Energy Technology?

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 Guangdong Yussen Energy Technology. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Guangdong Yussen Energy Technology, (below). Of course, keep in mind that there are other factors to consider, too.

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SZSE:002986 Earnings and Revenue Growth August 23rd 2024

Guangdong Yussen Energy Technology is not owned by hedge funds. Xiannian Hu is currently the largest shareholder, with 24% of shares outstanding. With 5.1% and 3.0% of the shares outstanding respectively, Zhenghuan Zeng and Guangdong Hengjian International Investment Co., Ltd. are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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

Insider Ownership Of Guangdong Yussen Energy Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Guangdong Yussen Energy Technology Co., Ltd.. Insiders have a CN¥1.4b stake in this CN¥4.3b business. 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, mostly comprising of individual investors, collectively holds 58% of Guangdong Yussen Energy Technology shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. Case in point: We've spotted 3 warning signs for Guangdong Yussen Energy Technology you should be aware of, and 1 of them is a bit unpleasant.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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