Private companies among the largest shareholders of Huadian Power International Corporation Limited (HKG: 1071) saw their holdings rise in value after shares jumped 9.3% last week


If you want to know who actually controls Huadian Power International Corporation Limited (HKG: 1071), then you will have to look at the makeup of its share register. And the group that holds the biggest slice of the pie are private companies with 58% ownership. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).

Clearly, private companies have benefited the most after the company’s market capitalization rose to HK $ 2.9 billion last week.

Let’s dig deeper into each type of owner of Huadian Power International, starting with the table below.

See our latest analysis for Huadian Power International

SEHK: 1071 Distribution of ownership December 17, 2021

What does institutional ownership tell us about Huadian Power International?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that Huadian Power International has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Huadian Power International’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
SEHK: 1071 Revenue and revenue growth on December 17, 2021

Hedge funds don’t have a lot of shares in Huadian Power International. The main shareholder of the company is China Huadian Corporation Ltd., with a 47% stake. Meanwhile, the second and third shareholders respectively hold 7.7% and 4.0% of the outstanding shares.

A more detailed study of the register of shareholders showed us that 2 of the major shareholders hold a considerable share of the ownership of the company, through their 54% stake.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.

Insider Ownership of Huadian Power International

The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data suggests that insiders own less than 1% of Huadian Power International Corporation Limited in their own name. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. It is a fairly large company, so it would be possible for the board members to have a significant interest in the company, without owning a large part of a proportional interest. In this case, they own around HK $ 56,000 of shares (at current prices). Arguably recent purchases and sales are equally important to consider. You can click here to see if any Insiders have bought or sold.

General public property

The general public, including retail investors, own 31% of the company’s equity and therefore cannot be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Owned by a private company

Our data indicates that private companies own 58% of the company’s shares. Private companies can be related parties. Sometimes, insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Huadian Power International, there are many other factors that we need to consider. For example, we have identified 5 warning signs for Huadian Power International (1 is of concern) that you should be aware of.

If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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