Individual investors who hold 48% of Zhuhai Enpower Electric Co.,Ltd. (SZSE:300681) gained 10%, insiders profited as well

Key Insights

• Significant control over Zhuhai Enpower ElectricLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 9 investors have a majority stake in the company with 51% ownership
• 43% of Zhuhai Enpower ElectricLtd is held by insiders

If you want to know who really controls Zhuhai Enpower Electric Co.,Ltd. (SZSE:300681), then you'll have to look at the makeup of its share registry. With 48% stake, individual investors 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.

While individual investors were the group that benefitted the most from last week’s CN¥396m market cap gain, insiders too had a 43% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Zhuhai Enpower ElectricLtd.

View our latest analysis for Zhuhai Enpower ElectricLtd

What Does The Institutional Ownership Tell Us About Zhuhai Enpower ElectricLtd?

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 Zhuhai Enpower ElectricLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Zhuhai Enpower ElectricLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhuhai Enpower ElectricLtd. Our data shows that Guibin Jiang is the largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.4% and 4.3% of the stock. Interestingly, the bottom two of the top three shareholders also hold the title of Senior Key Executive and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Zhuhai Enpower ElectricLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Zhuhai Enpower Electric Co.,Ltd.. Insiders have a CN¥1.8b stake in this CN¥4.3b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in Zhuhai Enpower ElectricLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Zhuhai Enpower ElectricLtd that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.