Key Insights

• Significant control over CIMC Enric Holdings by public companies implies that the general public has more power to influence management and governance-related decisions
• 70% of the company is held by a single shareholder (China International Marine Containers (Group) Co., Ltd.)
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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Every investor in CIMC Enric Holdings Limited (HKG:3899) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 70% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit HK$13b market cap following a 3.5% gain in the stock.

Let's delve deeper into each type of owner of CIMC Enric Holdings, beginning with the chart below.

See our latest analysis for CIMC Enric Holdings

What Does The Institutional Ownership Tell Us About CIMC Enric 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.

We can see that CIMC Enric Holdings does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 CIMC Enric Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

CIMC Enric Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China International Marine Containers (Group) Co., Ltd. with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Rosefinch Fund Management Co., Ltd. is the second largest shareholder owning 1.3% of common stock, and The Vanguard Group, Inc. holds about 1.2% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of CIMC Enric Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of CIMC Enric Holdings Limited in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$50m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CIMC Enric Holdings. 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.

Public Company Ownership

Public companies currently own 70% of CIMC Enric Holdings stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for CIMC Enric Holdings you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.