After buying recently, insiders of Xinyi Glass Holdings Limited (HKG:868) must be dismayed to see the company’s market capitalization plummet to HK$49 billion

Every investor in Xinyi Glass Holdings Limited (HKG:868) should know the most powerful shareholder groups. With a 59% stake, individual insiders own the most shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

A quick look at our data suggests that insiders have been buying shares of the company recently. Their expectations, however, were not met as the market capitalization fell to HK$49 billion over the past week.

Let’s dive deeper into each type of owner in Xinyi Glass Holdings, starting with the table below.

If you’re not interested in finding 868’s ownership structure, we have a free list of interesting investment ideas to potentially inspire your next investment!

SEHK: 868 Ownership Breakdown September 25, 2022

What does institutional ownership tell us about Xinyi Glass Holdings?

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.

As you can see, institutional investors hold a sizeable share of Xinyi Glass Holdings. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of Xinyi Glass Holdings below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK: 868 Profit and Revenue Growth September 25, 2022

Xinyi Glass Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Yin Yee Lee (who also holds the title of Top Key Executive) with 28% of the shares outstanding. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. Ching Sai Tung is the second largest shareholder with 11% of the common shares and Ching Bor Tung owns about 8.1% of the shares of the company. Note that two of the top three shareholders are also CEO and Vice Chairman respectively, again indicating significant insider participation in the company.

After digging a little deeper, we found that the top 4 shareholders control over half of the company’s stock, which basically means there is concentrated ownership among the top shareholders, most of whom are insiders!

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of Xinyi Glass Holdings

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

It appears that insiders own more than half of the shares of Xinyi Glass Holdings Limited. It gives them a lot of power. This means that insiders have a very significant HK$29 billion stake in this HK$49 billion company. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if they have sold their stake.

General public property

With a 23% stake, the general public, consisting mainly of individual investors, has some influence over Xinyi Glass Holdings. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. To this end, you should be aware of the 1 warning sign we spotted with Xinyi Glass Holdings.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Valuation is complex, but we help make it simple.

Find out if Xinyi Glass Farms is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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