If you want to know who actually controls China ZhengTong Auto Services Holdings Limited (HKG:1728), then you will need to look at the composition of its share register. The group holding the largest number of shares in the company, around 48% to be precise, are made up of individual investors. In other words, the group faces the maximum upside potential (or downside risk).
As a result, individual investors were the main beneficiaries of last week’s 12% gain.
Let’s take a closer look at what different types of shareholders can tell us about China ZhengTong Auto Services Holdings.
Check out our latest analysis for China ZhengTong Auto Services Holdings
What does institutional ownership tell us about China ZhengTong Auto Services 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.
Less than 5% of China ZhengTong Auto Services Holdings is owned by institutional investors. This suggests that some funds have the company in their sights, but many have yet to buy shares. If the company strengthens from here, we could see a situation where more institutions are eager to buy. We sometimes see a rise in the stock price when a few large institutions want to buy a certain stock at the same time. Earnings and revenue history, which you can see below, could be helpful in determining whether more institutional investors will want the stock. Of course, there are also many other factors to consider.
China ZhengTong Auto Services Holdings is not owned by hedge funds. Our data shows that Xiamen ITG Holding Group Co., Ltd. is the main shareholder with 30% of the outstanding shares. With 21% and 1.1% of shares outstanding, respectively, Muqing Wang and Dimensional Fund Advisors LP are the second and third largest shareholders.
A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 50% stake.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider ownership of China ZhengTong Auto Services Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of China ZhengTong Auto Services Holdings Limited. Its market capitalization is only HK$1.5 billion and insiders hold HK$315 million worth of shares in their own name. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.
General public property
The general public, including retail investors, owns 48% of the company’s shares and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private Company Ownership
It seems that private companies own 30% of the shares of China ZhengTong Auto Services Holdings. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 1 warning sign for China ZhengTong Auto Services Holdings which you should be aware of before investing here.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.