What does the ownership structure of China National Building Material Company Limited (HKG: 3323) look like?
Every investor in China National Building Material Company Limited (HKG: 3323) should know about the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
China National Building Material has a market cap of HK $ 90 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different property groups to learn more about China National Building Material.
Check out our latest review for China National Building Material
What does institutional ownership tell us about Chinese domestic building materials?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors own a large share of China National Building Material. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. 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 the past revenue trajectory of China National Building Material (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of stock in China National Building Material. Looking at our data, we can see that the largest shareholder is China National Building Material Group Co., Ltd. with 23% of the shares outstanding. For context, the second largest shareholder owns around 18% of the outstanding shares, followed by a 3.4% stake by the third largest shareholder.
We also observed that the top 6 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.
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.
China National Building Material Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
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 data cannot confirm that board members personally own shares. We don’t often see this low level of ownership, and our data may be imperfect. But shareholders can click here to check if any insiders have sold any shares.
General public property
With a 37% stake, the general public has some influence over China National Building Material. 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
We can see that the private companies own 29% of the issued 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 additional area of research.
Public enterprise ownership
It seems to us that state-owned enterprises own 18% of China National Building Material. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
It’s always worth thinking about the different groups that own shares in a company. But to better understand China National Building Material, there are many other factors that we need to consider. To do this, you need to know the 2 warning signs we spotted with China National Building Material.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
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.
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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 shares 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 the mentioned stocks.
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