Suzhou Jin Hong Shun Auto Parts Co., Ltd.'s (SHSE:603922) largest shareholders are private companies who were rewarded as market cap surged CN¥453m last week

Key Insights

• The considerable ownership by private companies in Suzhou Jin Hong Shun Auto Parts indicates that they collectively have a greater say in management and business strategy
• A total of 4 investors have a majority stake in the company with 52% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Suzhou Jin Hong Shun Auto Parts Co., Ltd. (SHSE:603922) can tell us which group is most powerful. With 51% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies were the biggest beneficiaries of last week’s 11% gain.

Let's delve deeper into each type of owner of Suzhou Jin Hong Shun Auto Parts, beginning with the chart below.

See our latest analysis for Suzhou Jin Hong Shun Auto Parts

What Does The Institutional Ownership Tell Us About Suzhou Jin Hong Shun Auto Parts?

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.

As you can see, institutional investors have a fair amount of stake in Suzhou Jin Hong Shun Auto Parts. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Suzhou Jin Hong Shun Auto Parts' earnings history below. Of course, the future is what really matters.

Suzhou Jin Hong Shun Auto Parts is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hainan Zhongde Technology Co., Ltd. with 30% of shares outstanding. Gaode Investment Co., Ltd. is the second largest shareholder owning 17% of common stock, and Zhangjiagang Zhongcheng Investment Management Enterprise (Limited Partnership) holds about 2.4% of the company stock.

On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Suzhou Jin Hong Shun Auto Parts

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Suzhou Jin Hong Shun Auto Parts Co., Ltd.. In their own names, insiders own CN¥65m worth of stock in the CN¥4.6b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Suzhou Jin Hong Shun Auto Parts. 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

It seems that Private Companies own 51%, of the Suzhou Jin Hong Shun Auto Parts stock. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Jin Hong Shun Auto Parts better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Suzhou Jin Hong Shun Auto Parts .

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.

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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.