Shanghai Automobile Air-Conditioner Accessories Co., Ltd.'s (SHSE:603107) market cap surged CN¥466m last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Shanghai Automobile Air-Conditioner Accessories' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 56% ownership
• 18% of Shanghai Automobile Air-Conditioner Accessories is held by insiders

Every investor in Shanghai Automobile Air-Conditioner Accessories Co., Ltd. (SHSE:603107) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 33% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit CN¥6.1b market cap following a 8.3% gain in the stock.

Let's delve deeper into each type of owner of Shanghai Automobile Air-Conditioner Accessories, beginning with the chart below.

View our latest analysis for Shanghai Automobile Air-Conditioner Accessories

What Does The Institutional Ownership Tell Us About Shanghai Automobile Air-Conditioner Accessories?

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.

Less than 5% of Shanghai Automobile Air-Conditioner Accessories is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Shanghai Automobile Air-Conditioner Accessories. Looking at our data, we can see that the largest shareholder is Shanghai Aerospace Automobile Electromechanical Co., Ltd. with 33% of shares outstanding. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 8.1% by the third-largest shareholder. Furthermore, CEO Youzhao Wang is the owner of 1.1% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Shanghai Automobile Air-Conditioner Accessories

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Shanghai Automobile Air-Conditioner Accessories Co., Ltd.. It has a market capitalization of just CN¥6.1b, and insiders have CN¥1.1b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 22%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 33% of the Shanghai Automobile Air-Conditioner Accessories shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Automobile Air-Conditioner Accessories better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Shanghai Automobile Air-Conditioner Accessories you should be aware of, and 1 of them is a bit concerning.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

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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.