July 23, 2024

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Private companies in Hamaton Automotive Technology Co., Ltd (SZSE:300643) are its biggest bettors, and their bets paid off as stock gained 14% last week

5 min read

Key Insights

If you want to know who really controls Hamaton Automotive Technology Co., Ltd (SZSE:300643), 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 private companies with 44% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company’s market cap rose by CN¥430m last week.

Let’s take a closer look to see what the different types of shareholders can tell us about Hamaton Automotive Technology.

Check out our latest analysis for Hamaton Automotive Technology

ownership-breakdown
SZSE:300643 Ownership Breakdown June 19th 2024

What Does The Institutional Ownership Tell Us About Hamaton Automotive Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Hamaton Automotive Technology does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Hamaton Automotive Technology, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SZSE:300643 Earnings and Revenue Growth June 19th 2024

Hamaton Automotive Technology is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hangzhou Hamaton Intelligent Control Holdings Co., Ltd. with 44% of shares outstanding. Hangzhou Finance Investment Group Co., Ltd., Asset Management Arm is the second largest shareholder owning 6.6% of common stock, and Xuanyuan Private Fund Investment Management (Guangdong) Co., Ltd. holds about 1.3% of the company stock. Additionally, the company’s CEO Jian Er Zhang directly holds 1.1% of the total shares outstanding.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hamaton Automotive Technology

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.

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

Our most recent data indicates that insiders own some shares in Hamaton Automotive Technology Co., Ltd. It has a market capitalization of just CN¥3.0b, and insiders have CN¥72m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 41% stake in Hamaton Automotive Technology. 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

It seems that Private Companies own 44%, of the Hamaton Automotive Technology stock. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 2 warning signs for Hamaton Automotive Technology you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Hamaton Automotive Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we’re helping make it simple.

Find out whether Hamaton Automotive Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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