Today, I will be analyzing China 33 Media Group Limited’s (SEHK:8087) recent ownership structure, an important but not-so-popular subject among individual investors. The impact of a company’s ownership structure affects both its short- and long-term performance. Since the effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company’s corporate governance and accountability of shareholders, investors should take a closer look at 8087’s shareholder registry.

See our latest analysis for China 33 Media Group

Institutional Ownership

Institutional investors typically buy and sell shares in large magnitudes which can significantly sway the share price, especially when there are relatively small amounts of shares available on the market to trade. A low institutional ownership of 7.01% puts 8087 on a list of companies that are not likely exposed to spikes in volatility resulting from institutional trading.

General Public Ownership

A substantial ownership of 82.99% in 8087 is held by the general public. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company.

Private Company Ownership

Potential investors in 8087 should also look at another important group of investors: private companies, with a stake of 10.00%, who are primarily invested because of strategic and capital gain interests. An ownership of this size indicates a strong financial backing and has the potential to influence 8087’s business strategy. Thus, investors should dig deeper into 8087’s business relations with these companies and how it can affect shareholder returns in the long-term.

Next Steps:

Institutional ownership level and composition in 8087 is not high nor active enough to significantly impact its investment thesis. However, ownership structure should not be the only focus of your research when constructing an investment thesis around 8087. Rather, you should be looking at fundamental drivers such as the intrinsic valuation, which is a key driver of China 33 Media Group’s share price. I highly recommend you to complete your research by taking a look at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.