Shanghai Yanpu Metal Products Co.,Ltd (SHSE:605128) Top Key Executive Jianqing Zhou, the company's largest shareholder sees 8.2%reduction in holdings value

Key Insights

• Insiders appear to have a vested interest in Shanghai Yanpu Metal ProductsLtd's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 3 shareholders
• 12% of Shanghai Yanpu Metal ProductsLtd is held by Institutions

A look at the shareholders of Shanghai Yanpu Metal Products Co.,Ltd (SHSE:605128) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CN¥4.3b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Yanpu Metal ProductsLtd.

See our latest analysis for Shanghai Yanpu Metal ProductsLtd

What Does The Institutional Ownership Tell Us About Shanghai Yanpu Metal ProductsLtd?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai Yanpu Metal ProductsLtd. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shanghai Yanpu Metal ProductsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Shanghai Yanpu Metal ProductsLtd is not owned by hedge funds. Our data suggests that Jianqing Zhou, who is also the company's Top Key Executive, holds the most number of shares at 38%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 9.5% and 4.4% of the shares outstanding respectively, Sicheng Zhang and Yong Qian are the second and third largest shareholders. Interestingly, the third-largest shareholder, Yong Qian is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Shanghai Yanpu Metal ProductsLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 the majority of Shanghai Yanpu Metal Products Co.,Ltd. This means they can collectively make decisions for the company. Given it has a market cap of CN¥4.3b, that means they have CN¥2.5b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Yanpu Metal ProductsLtd better, we need to consider many other factors. Be aware that Shanghai Yanpu Metal ProductsLtd is showing 1 warning sign in our investment analysis , you should know about...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.