Private equity firms among major shareholders of Asiainfo Technologies Limited (HKG:1675) saw their value rise after shares jumped 6.1% last week
To get an idea of who actually controls Asiainfo Technologies Limited (HKG:1675), it is important to understand the ownership structure of the company. And the group with the biggest slice of the pie are private equity firms with 34% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
As a result, private equity firms were the main beneficiaries of last week’s 6.1% gain.
Let’s dive deeper into each Asiainfo Technologies owner type, starting with the table below.
Check out our latest analysis for Asiainfo Technologies
What does institutional ownership tell us about Asiainfo Technologies?
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.
Asiainfo Technologies already has institutions on the share register. Indeed, they hold a respectable stake in the company. 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. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Asiainfo Technologies’ revenue and historical earnings below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Asiainfo Technologies. Trustar Capital is currently the company’s largest shareholder with 23% of the outstanding shares. China Mobile Communications Group Co., Ltd. is the second largest shareholder with 20% of the common shares and Suning Tian owns about 9.7% of the company’s shares. Suning Tian, who is the third largest shareholder, also holds the title of chairman of the board. Additionally, the company’s CEO, Nianshu Gao, directly owns 0.6% of the total shares outstanding.
To make our study more interesting, we found that the top 3 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.
Asiainfo Technologies Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
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 hold a large share of Asiainfo Technologies Limited. Its market capitalization is only HK$14 billion and insiders hold HK$2.4 billion worth of shares in their own name. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public, generally individual investors, holds 15% of the capital of Asiainfo Technologies. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private equity ownership
The private equity firms hold a 34% stake in Asiainfo Technologies. This suggests that they can influence key policy decisions. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.
Private Company Ownership
Our data indicates that private companies hold 20% of the shares of society. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is worth considering the different groups that own a business, there are other, even more important factors.
I like to dive deeper on the performance of a company in the past. You can find Earnings and Earnings History in this detailed graph.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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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.