Shanghai Putailai New Energy Technology Co.,Ltd.'s (SHSE:603659) top holders are insiders and they are likely disappointed by the recent 18% drop

Simply Wall St · 10/16 07:40

Key Insights

If you want to know who really controls Shanghai Putailai New Energy Technology Co.,Ltd. (SHSE:603659), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CN¥29b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Putailai New Energy TechnologyLtd.

See our latest analysis for Shanghai Putailai New Energy TechnologyLtd

ownership-breakdown
SHSE:603659 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About Shanghai Putailai New Energy TechnologyLtd?

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 Shanghai Putailai New Energy TechnologyLtd 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. 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 Shanghai Putailai New Energy TechnologyLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SHSE:603659 Earnings and Revenue Growth October 16th 2024

Hedge funds don't have many shares in Shanghai Putailai New Energy TechnologyLtd. Feng Liang is currently the largest shareholder, with 25% of shares outstanding. Ningbo Shengyue Venture Capital Partnership Enterprise (Limited Partnership) is the second largest shareholder owning 11% of common stock, and Nanyang Kuoneng Enterprise Management Partnership Enterprise (Limited Partnership) holds about 9.4% of the company stock. In addition, we found that Wei Chen, the CEO has 8.3% of the shares allocated to their name.

Our research also brought to light the fact that roughly 54% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Shanghai Putailai New Energy TechnologyLtd

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.

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 Shanghai Putailai New Energy Technology Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥11b stake in this CN¥29b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Shanghai Putailai New Energy TechnologyLtd. 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.

Private Company Ownership

We can see that Private Companies own 20%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Putailai New Energy TechnologyLtd better, we need to consider many other factors. Take risks for example - Shanghai Putailai New Energy TechnologyLtd has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.