Could the ownership structure of Golden Century International Holdings Group Limited (HKG: 91) tell us anything useful?

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The large shareholder groups of Golden Century International Holdings Group Limited (HKG: 91) have power over the company. Insiders often own a large portion of younger and smaller firms, while larger firms tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.

Golden Century International Holdings Group is a smaller company with a market cap of HK $ 794 million, so it may still go under the radar of many institutional investors. Our analysis of company ownership, below, shows that institutions are not really present on the share register. Let’s dig deeper into each type of owner to find out more about Golden Century International Holdings Group.

Check out our latest analysis for Golden Century International Holdings Group

SEHK: 91 Distribution of ownership as of December 30, 2021

What does institutional ownership tell us about Golden Century International Holdings Group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.

The institutions have a very small stake in Golden Century International Holdings Group. This indicates that the company is on the radar of certain funds, but it is not particularly popular with professional investors at the moment. If the company increases its profits, it may indicate that it is just starting to catch the attention of those investors with deep pockets. When several institutional investors want to buy stocks, we often see a rise in the price of the stocks. The past trajectory of income (shown below) may be an indication of future growth, but there is no guarantee.

profit and revenue growth
SEHK: 91 Revenue and revenue growth on December 30, 2021

We note that the hedge funds do not have a significant investment in Golden Century International Holdings Group. Looking at our data, we can see that the largest shareholder is CEO Jibiao Pan with 74% of the shares outstanding. This implies that they own majority interests and exercise significant control over the company. Investors generally consider it a good sign when the management of the company has such a strong interest, as it is widely seen to increase the chances that management will act in the best interest of the company. The second and third shareholders are Wealthking Investments Limited and Innovest Investment Fund SPC – Innovest Special Opportunities SP, with an equal number of shares in their name at 3.4%.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider ownership of the Golden Century International Holdings group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own the majority of Golden Century International Holdings Group Limited. This means that they can collectively make decisions for the business. This means that they own HK $ 557million worth of shares in the HK $ 794million company. It is quite significant. Most would be happy to see the board invest alongside them. You may wish to find out (free) whether they bought or sold.

General public property

The general public, including retail investors, own an 18% stake in the company and therefore cannot be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.

Owned by a private company

Our data indicates that private companies own 3.2% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Golden Century International Holdings Group, there are many other factors that we need to consider. Consider, for example, the ever-present specter of investment risk. We have identified 5 warning signs with Golden Century International Holdings Group (at least 3 that make us uncomfortable), and understanding them should be part of your investment process.

Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.

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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