Private companies are EFORT Intelligent Equipment Co., Ltd.'s (SHSE:688165) biggest owners and were rewarded after market cap rose by CN¥360m last week

Key Insights

• EFORT Intelligent Equipment's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 5 investors have a majority stake in the company with 58% 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 EFORT Intelligent Equipment Co., Ltd. (SHSE:688165) can tell us which group is most powerful. With 38% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥4.3b market cap following a 9.2% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about EFORT Intelligent Equipment.

Check out our latest analysis for EFORT Intelligent Equipment

What Does The Institutional Ownership Tell Us About EFORT Intelligent Equipment?

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.

We can see that EFORT Intelligent Equipment does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of EFORT Intelligent Equipment, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in EFORT Intelligent Equipment. Wuhu Yuanhong Industrial Robot Investment Co., Ltd. is currently the largest shareholder, with 16% of shares outstanding. With 12% and 11% of the shares outstanding respectively, Wuhu Yuanda Venture Capital Co., Ltd. and Anhui Xinbao Costone Asset Management Co., Ltd. are the second and third largest shareholders.

On looking further, we found that 58% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of EFORT Intelligent Equipment

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own less than 1% of EFORT Intelligent Equipment Co., Ltd.. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about CN¥23m worth of stock. This compares to a market capitalization of CN¥4.3b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in EFORT Intelligent Equipment. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 24% stake in EFORT Intelligent Equipment. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 38%, of the EFORT Intelligent Equipment 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.

Public Company Ownership

It appears to us that public companies own 4.6% of EFORT Intelligent Equipment. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.