Fascinating technology

What percentage of shares in Golden Solar New Energy Technology Holdings Limited (HKG: 1121) do insiders own?

If you want to know who really controls Golden Solar New Energy Technology Holdings Limited (HKG: 1121), then you will need to look at the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market cap of HK $ 18 billion, Golden Solar New Energy Technology Holdings is a decent size, so it’s probably on the radar of institutional investors. Looking at our data on ownership groups (below), it appears that institutions do not own shares in the company. Let’s dig deeper into each type of owner to find out more about Golden Solar New Energy Technology Holdings.

Check out our latest analysis for Golden Solar New Energy Technology Holdings

SEHK: 1121 Distribution of ownership October 27, 2021

What does the lack of institutional ownership tell us about Golden Solar New Energy Technology Holdings?

We don’t tend to see institutional investors owning stocks of very risky, lightly traded, or very small companies. While we sometimes see large companies without registered institutions, this is not particularly common.

There are several explanations why institutions do not hold shares. The most common is that the company is too small in relation to the funds under management, so that the institution does not bother to take a close look at the company. It is also possible that the fund managers do not own the stock because they are not convinced that it will perform well. Golden Solar New Energy Technology Holdings’ earnings and earnings (below) may not be convincing to institutional investors – or they may simply not have looked at the company closely.

profit and revenue growth
SEHK: 1121 Revenue and Revenue Growth October 27, 2021

Hedge funds don’t have a lot of shares in Golden Solar New Energy Technology Holdings. Looking at our data, we can see that the largest shareholder is Ching Bor Sze with 15% of the shares outstanding. In comparison, the second and third shareholders hold around 14% and 13% of the capital.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.

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. The title is covered by analysts, but it could become even more famous over time.

Insider Ownership of Golden Solar New Energy Technology Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

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 information suggests that insiders own more than half of Golden Solar New Energy Technology Holdings Limited. This gives them effective control of the business. Given that it has a market cap of HK $ 18 billion, this means that insiders have a whopping HK $ 9.8 billion stock value in their own name. Most would be happy to see the board invest alongside them. You might want to know if they bought or sold.

General public property

The general public, with a 46% stake in the company, will not be easily overlooked. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. For example, we have identified 2 warning signs for Golden Solar New Energy Technology Holdings that you need to 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 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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