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Every investor in CSSC (Hong Kong) Shipping Company Limited (HKG:3877) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 74% ownership. 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$9.9b last week, public companies would have faced the highest losses than any other shareholder groups of the company.
Let's take a closer look to see what the different types of shareholders can tell us about CSSC (Hong Kong) Shipping.
View our latest analysis for CSSC (Hong Kong) Shipping
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 CSSC (Hong Kong) Shipping does have institutional investors; and they hold a good portion of the company's stock. 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 CSSC (Hong Kong) Shipping's historic earnings and revenue below, but keep in mind there's always more to the story.
CSSC (Hong Kong) Shipping is not owned by hedge funds. The company's largest shareholder is CSSC Offshore & Marine Engineering (Group) Company Limited, with ownership of 74%. This implies that they have majority interest control of the future of the company. With 8.4% and 3.4% of the shares outstanding respectively, China Re Asset Management Company Ltd. and GF Fund Management Co., Ltd. are the second and third largest shareholders.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
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. 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.
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.
Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to take a look at this free summary of insider buying and selling.
The general public, who are usually individual investors, hold a 13% stake in CSSC (Hong Kong) Shipping. 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.
We can see that public companies hold 74% of the CSSC (Hong Kong) Shipping shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
It's always worth thinking about the different groups who own shares in a company. But to understand CSSC (Hong Kong) Shipping better, we need to consider many other factors. For example, we've discovered 1 warning sign for CSSC (Hong Kong) Shipping that you should be aware of before investing here.
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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