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Aecc Aero-Engine Control Co.,Ltd. (SZSE:000738) Stock Most Popular Amongst Private Companies Who Own 39%, While Individual Investors Hold 32%

Simply Wall St ·  Dec 27 16:09

Key Insights

  • The considerable ownership by private companies in Aecc Aero-Engine ControlLtd indicates that they collectively have a greater say in management and business strategy
  • A total of 3 investors have a majority stake in the company with 52% ownership
  • Institutions own 15% of Aecc Aero-Engine ControlLtd

If you want to know who really controls Aecc Aero-Engine Control Co.,Ltd. (SZSE:000738), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 32% ownership in the company.

Let's delve deeper into each type of owner of Aecc Aero-Engine ControlLtd, beginning with the chart below.

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SZSE:000738 Ownership Breakdown December 28th 2024

What Does The Institutional Ownership Tell Us About Aecc Aero-Engine ControlLtd?

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 Aecc Aero-Engine ControlLtd does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Aecc Aero-Engine ControlLtd's earnings history below. Of course, the future is what really matters.

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SZSE:000738 Earnings and Revenue Growth December 28th 2024

Aecc Aero-Engine ControlLtd is not owned by hedge funds. Aero Engine Corporation of China is currently the largest shareholder, with 36% of shares outstanding. AECC Aviation Power Co.,Ltd is the second largest shareholder owning 14% of common stock, and Huihua Fund Management Co., Ltd. holds about 2.1% of the company stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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 forecasting, too.

Insider Ownership Of Aecc Aero-Engine ControlLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 39%, 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.

Public Company Ownership

It appears to us that public companies own 14% of Aecc Aero-Engine ControlLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Aecc Aero-Engine ControlLtd .

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.

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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.

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