Every investor in The People’s Insurance Company (Group) of China Limited (HKG:1339) should know the most powerful shareholder groups. We can see that the state or government owns the lion’s share of the business with 61% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
As a result, the state or government collectively got the highest score last week, with the company hitting a market capitalization of HK$227 billion after a 5.0% gain in the stock.
Let’s take a closer look at what different types of shareholders can tell us about People’s Insurance Company (Group) of China.
Our analysis indicates that 1339 is potentially undervalued!
What does institutional ownership tell us about the People’s Insurance Company (group) of China?
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.
People’s Insurance Company (Group) of China already has institutions registered in 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. 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 People’s Insurance Company (Group) of China below. Of course, the future is what really matters.
People’s Insurance Company (Group) of China is not a hedge fund. Looking at our data, we can see that the largest shareholder is the Ministry of Finance of the People’s Republic of China with 61% of the shares outstanding. With such a stake in ownership, we infer that they have significant control over the future of the business. The National Social Security Fund Board is the second-largest shareholder with 14% of the common stock, and BlackRock, Inc. owns about 1.2% of the company’s stock.
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. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider ownership of People’s Insurance Company (Group) of China
The definition of an insider may differ slightly from country to country, but board members still matter. 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.
Our data suggests that insiders own less than 1% of The People’s Insurance Company (Group) of China Limited in their own name. Being so large, we wouldn’t expect insiders to own a large portion of the shares. Collectively, they own HK$231 million worth of shares. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
With a 19% stake, the general public, consisting mainly of individual investors, has some influence over People’s Insurance Company (Group) of China. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information.
I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
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Find out if People’s Insurance Company (Group) of China 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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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.