Key Insights
- Greentown Management Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- The largest shareholder of the company is Greentown China Holdings Limited with a 71% stake
- Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of Greentown Management Holdings Company Limited (HKG:9979), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 71% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, public companies collectively scored the highest last week as the company hit HK$16b market cap following a 7.5% gain in the stock.
Let's delve deeper into each type of owner of Greentown Management Holdings, beginning with the chart below.
Check out our latest analysis for Greentown Management Holdings
What Does The Institutional Ownership Tell Us About Greentown Management 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.
As you can see, institutional investors have a fair amount of stake in Greentown Management Holdings. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Greentown Management Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Greentown Management Holdings. Looking at our data, we can see that the largest shareholder is Greentown China Holdings Limited with 71% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. China Asset Management Co. Ltd. is the second largest shareholder owning 0.9% of common stock, and BlackRock, Inc. holds about 0.6% of the company stock.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Greentown Management Holdings
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own under 1% of Greentown Management Holdings Company Limited in their own names. Keep in mind that it's a big company, and the insiders own HK$60m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Greentown Management Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
We can see that public companies hold 71% of the Greentown Management Holdings shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Greentown Management Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Greentown Management Holdings you should know about.
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.