Hoyuan Green Energy Co., Ltd.'s (SHSE:603185) market cap increased by CN¥2.2b, insiders receive a 43% cut

Key Insights

• Hoyuan Green Energy's significant insider ownership suggests inherent interests in company's expansion
• 52% of the business is held by the top 5 shareholders
• Institutional ownership in Hoyuan Green Energy is 17%

If you want to know who really controls Hoyuan Green Energy Co., Ltd. (SHSE:603185), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit CN¥10b market cap following a 27% gain in the stock.

Let's delve deeper into each type of owner of Hoyuan Green Energy, beginning with the chart below.

View our latest analysis for Hoyuan Green Energy

What Does The Institutional Ownership Tell Us About Hoyuan Green Energy?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Hoyuan Green Energy 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. 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 Hoyuan Green Energy's earnings history below. Of course, the future is what really matters.

Hoyuan Green Energy is not owned by hedge funds. Jianliang Yang is currently the largest shareholder, with 29% of shares outstanding. With 13% and 4.7% of the shares outstanding respectively, Hong Hang and Jiangsu Jinpu Private Equity Fund Management Co., Ltd. are the second and third largest shareholders. Additionally, the company's CEO Hao Yang directly holds 0.7% of the total shares outstanding.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Hoyuan Green Energy

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in Hoyuan Green Energy Co., Ltd.. Insiders own CN¥4.5b worth of shares in the CN¥10b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Hoyuan Green Energy. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hoyuan Green Energy better, we need to consider many other factors. For instance, we've identified 1 warning sign for Hoyuan Green Energy that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.