To get an idea of ​​who actually controls Midea Real Estate Holding Limited (HKG: 3990), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie are individual insiders with 79% ownership. In other words, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefited the most after the company’s market capitalization rose by HK$719 million last week.

Let’s take a closer look at what different types of shareholders can tell us about Midea Real Estate Holding.

Check out our latest analysis for Midea Real Estate Holding

SEHK: 3990 Ownership Breakdown June 26, 2022

What does institutional ownership tell us about Midea Real Estate Holding?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Institutions have a very small stake in Midea Real Estate Holding. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company strengthens from here, we could see a situation where more institutions are eager to buy. We sometimes see a rise in the stock price when a few large institutions want to buy a certain stock at the same time. Earnings and revenue history, which you can see below, could be helpful in determining whether more institutional investors will want the stock. Of course, there are also many other factors to consider.

SEHK: 3990 Profit and Revenue Growth June 26, 2022

We note that hedge funds have no significant investment in Midea Real Estate Holding. The company’s largest shareholder is Jianfeng He, with a 78% stake. This implies that they have majority control over the future of the company. In comparison, the second and third shareholders hold around 0.8% and 0.7% of the shares.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider ownership of Midea Real Estate Holding

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

It appears that insiders own more than half of the shares of Midea Real Estate Holding Limited. It gives them a lot of power. Insiders hold HK$12 billion worth of shares in the HK$15 billion company. It’s extraordinary ! Good to see this level of investment. You can check here if these insiders have sold any of their shares.

General public property

The general public, including retail investors, owns 18% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Midea Real Estate Holding, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 4 warning signs with Midea Real Estate Holding (at least 1, which is significant), and understanding them should be part of your investment process.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

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 in which 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.