individual investors who own 51% along with institutions invested in G-Resources Group Limited (HKG:1051) saw increase in their holdings value last week

Simply Wall St · 09/29 00:48

Key Insights

  • The considerable ownership by individual investors in G-Resources Group indicates that they collectively have a greater say in management and business strategy
  • A total of 5 investors have a majority stake in the company with 49% ownership
  • Institutions own 31% of G-Resources Group

To get a sense of who is truly in control of G-Resources Group Limited (HKG:1051), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched HK$1.1b last week, while institutions who own 31% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about G-Resources Group.

View our latest analysis for G-Resources Group

ownership-breakdown
SEHK:1051 Ownership Breakdown September 29th 2024

What Does The Institutional Ownership Tell Us About G-Resources Group?

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 G-Resources Group 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 G-Resources Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK:1051 Earnings and Revenue Growth September 29th 2024

We note that hedge funds don't have a meaningful investment in G-Resources Group. Our data shows that PX Capital Management Ltd. is the largest shareholder with 28% of shares outstanding. 19 Growth Equity Fund LP is the second largest shareholder owning 18% of common stock, and Dimensional Fund Advisors LP holds about 2.4% of the company stock.

Our studies suggest that the top 5 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 G-Resources Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

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 take a look at this free summary of insider buying and selling.

General Public Ownership

The general public -- including retail investors -- own 51% of G-Resources Group. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

Our data indicates that Private Companies hold 18%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand G-Resources Group better, we need to consider many other factors. Be aware that G-Resources Group is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.