Key Insights
- Insiders appear to have a vested interest in Aowei Holding's growth, as seen by their sizeable ownership
- The largest shareholder of the company is Ziwei Leung Hongying Li with a 72% stake
- Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of Aowei Holding Limited (HKG:1370) can tell us which group is most powerful. With 72% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As market cap fell to HK$785m last week, insiders would have faced the highest losses than any other shareholder groups of the company.
Let's delve deeper into each type of owner of Aowei Holding, beginning with the chart below.
Check out our latest analysis for Aowei Holding
What Does The Lack Of Institutional Ownership Tell Us About Aowei Holding?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Aowei Holding, for yourself, below.
Hedge funds don't have many shares in Aowei Holding. Looking at our data, we can see that the largest shareholder is the CEO Ziwei Leung Hongying Li with 72% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. With an ownership of 0.1%, the second largest shareholder is Dimensional Fund Advisors LP
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Aowei Holding
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.
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.
It seems that insiders own more than half the Aowei Holding Limited stock. This gives them a lot of power. So they have a HK$567m stake in this HK$785m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 28% stake in Aowei Holding. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Aowei Holding better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Aowei Holding you should know about.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com