Key findings

To get a sense of who really controls Hainan Airport Infrastructure Co., Ltd (SHSE:600515), it’s important to understand the company’s ownership structure. Private companies own the most shares in the company, with 45% of the shares. That means the group benefits the most when the stock rises (or loses the most when there is a downturn).

And private investors, in turn, own a 40% share in the company.

Let’s take a closer look at what the different types of shareholders can tell us about Hainan Airport’s infrastructure.

Check out our latest analysis of Hainan Airport infrastructure

What does institutional ownership tell us about Hainan Airport’s infrastructure?

Institutional investors often compare their own returns to those of a commonly followed index, so they typically consider buying larger companies included in the relevant benchmark index.

We can see that Hainan Airport Infrastructure has institutional investors; and they hold a large portion of the company’s shares. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. They too are sometimes wrong. If multiple institutions change their minds on a stock at the same time, the share price can fall quickly. It is therefore worth taking a look at Hainan Airport Infrastructure’s earnings history below. Of course, the future is what really matters.

We note that hedge funds do not make any significant investments in Hainan Airport Infrastructure. The company’s largest shareholder is Hainan Development Holdings Co., Ltd. with a 25% stake. For comparison, the second largest shareholder holds about 21% of the shares outstanding, followed by the third largest shareholder with a 1.9% stake.

To make our study even more interesting, we found that the top five shareholders control more than half of the company, meaning that this group has significant influence on the company’s decision-making.

While studying institutional ownership of a company can enrich your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are some analyst coverage of the stock, but it could become even more popular with time.

Insider ownership of Hainan Airport infrastructure

The definition of an insider may vary slightly in different countries, but members of the board of directors are always included. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the board of directors, especially if they are founders or CEOs.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, high insider ownership can also give enormous power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own less than 1% of Hainan Airport Infrastructure Co., Ltd in their own names. However, they could have indirect interests through a corporate structure we haven’t detected. It’s a fairly large company, so board members could own a significant stake in the company without owning a large proportional share. In this case, they own about CN¥4.6m worth of shares (at the current price). One could argue that it’s equally important to consider recent buying and selling. You can click here to see if insiders have been buying or selling.

Public property

The general public – including retail investors – owns 40% of the company’s shares and therefore cannot be easily ignored. While this level of ownership is significant, it may not be enough to change company policy if the decision does not coincide with that of other major shareholders.

Private company ownership

It appears that private companies own 45% of Hainan Airport Infrastructure’s shares. This might be worth investigating further. If related parties, such as insiders, have an interest in one of these private companies, this 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 investigate who exactly owns a company. But to gain real insights, we also need to consider other information. For example, we found 2 warning signals for Hainan Airport’s infrastructure (1 is significant) that you should know.

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.