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Gree Real Estate Co.,Ltd's (SHSE:600185) Largest Shareholders Are Individual Investors Who Were Rewarded as Market Cap Surged CN¥415m Last Week

Simply Wall St ·  Feb 26 10:46

Key Insights

  • Gree Real EstateLtd's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 12 investors have a majority stake in the company with 50% ownership
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Gree Real Estate Co.,Ltd (SHSE:600185) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors were the biggest beneficiaries of last week's 3.6% gain.

Let's delve deeper into each type of owner of Gree Real EstateLtd, beginning with the chart below.

ownership-breakdown
SHSE:600185 Ownership Breakdown February 26th 2024

What Does The Institutional Ownership Tell Us About Gree Real EstateLtd?

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 companies to have some institutions on the register, especially if they are growing.

We can see that Gree Real EstateLtd 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Gree Real EstateLtd's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SHSE:600185 Earnings and Revenue Growth February 26th 2024

Hedge funds don't have many shares in Gree Real EstateLtd. The company's largest shareholder is Zhuhai Investment Holdings Co., Ltd, with ownership of 45%. Meanwhile, the second and third largest shareholders, hold 0.8% and 0.5%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Gree Real EstateLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Gree Real EstateLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 45%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Gree Real EstateLtd (of which 1 makes us a bit uncomfortable!) you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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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.

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