Zhejiang Weixing New Building Materials Co., Ltd.'s (SZSE:002372) largest shareholders are private companies with 53% ownership, individual investors own 25%

Key Insights

• The considerable ownership by private companies in Zhejiang Weixing New Building Materials indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 53% ownership
• Insiders own 11% of Zhejiang Weixing New Building Materials

To get a sense of who is truly in control of Zhejiang Weixing New Building Materials Co., Ltd. (SZSE:002372), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 25% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Zhejiang Weixing New Building Materials.

View our latest analysis for Zhejiang Weixing New Building Materials

What Does The Institutional Ownership Tell Us About Zhejiang Weixing New Building Materials?

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 Zhejiang Weixing New Building Materials. 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. 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 Zhejiang Weixing New Building Materials, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Weixing New Building Materials is not owned by hedge funds. The company's largest shareholder is Weixing Group Co.,Ltd., with ownership of 38%. Meanwhile, the second and third largest shareholders, hold 15% and 5.3%, of the shares outstanding, respectively. Kapeng Zhang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Hongyang Jin is the owner of 1.1% of the company's shares.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zhejiang Weixing New Building Materials

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. 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.

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.

Our information suggests that insiders maintain a significant holding in Zhejiang Weixing New Building Materials Co., Ltd.. It has a market capitalization of just CN¥20b, and insiders have CN¥2.2b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang Weixing New Building Materials. 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 53%, of the Zhejiang Weixing New Building Materials stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Weixing New Building Materials better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Zhejiang Weixing New Building Materials you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.