Individual investors are Shanghai Taisheng Wind Power Equipment Co., Ltd.'s (SZSE:300129) biggest owners and were rewarded after market cap rose by CN¥701m last week

Key Insights

• Shanghai Taisheng Wind Power Equipment's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 15 investors have a majority stake in the company with 51% ownership
• Insider ownership in Shanghai Taisheng Wind Power Equipment is 11%

To get a sense of who is truly in control of Shanghai Taisheng Wind Power Equipment Co., Ltd. (SZSE:300129), it is important to understand the ownership structure of the business. With 44% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥701m last week.

In the chart below, we zoom in on the different ownership groups of Shanghai Taisheng Wind Power Equipment.

View our latest analysis for Shanghai Taisheng Wind Power Equipment

What Does The Institutional Ownership Tell Us About Shanghai Taisheng Wind Power Equipment?

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.

We can see that Shanghai Taisheng Wind Power Equipment does have institutional investors; and they hold a good portion of the company's stock. 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 Taisheng Wind Power Equipment's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Shanghai Taisheng Wind Power Equipment. Guangzhou Kaide Investment Holding Co., Ltd. is currently the largest shareholder, with 27% of shares outstanding. With 3.8% and 3.6% of the shares outstanding respectively, Bosera Asset Management Co., Ltd. and Zhicheng Liu are the second and third largest shareholders. Zhicheng Liu, who is the third-largest shareholder, also happens to hold the title of Chairman Emeritus.

A closer look at our ownership figures suggests that the top 15 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Shanghai Taisheng Wind Power Equipment

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Shanghai Taisheng Wind Power Equipment Co., Ltd.. It has a market capitalization of just CN¥6.8b, and insiders have CN¥762m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai Taisheng Wind Power Equipment. 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 Equity Ownership

Private equity firms hold a 27% stake in Shanghai Taisheng Wind Power Equipment. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Shanghai Taisheng Wind Power Equipment (including 1 which shouldn't be ignored) .

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.