Zhejiang Jindun Fans Co., Ltd's (SZSE:300411) market cap up CN¥407m last week, benefiting both retail investors who own 37% as well as insiders

Key Insights

• Significant control over Zhejiang Jindun Fans by retail investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 7 shareholders
• 35% of Zhejiang Jindun Fans is held by insiders

Every investor in Zhejiang Jindun Fans Co., Ltd (SZSE:300411) should be aware of the most powerful shareholder groups. With 37% stake, retail 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 retail investors were the group that reaped the most benefits after last week’s 8.1% price gain, insiders also received a 35% cut.

In the chart below, we zoom in on the different ownership groups of Zhejiang Jindun Fans.

Check out our latest analysis for Zhejiang Jindun Fans

What Does The Institutional Ownership Tell Us About Zhejiang Jindun Fans?

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 Zhejiang Jindun Fans 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. 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 Zhejiang Jindun Fans' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhejiang Jindun Fans. The company's largest shareholder is Miaogen Wang, with ownership of 13%. The second and third largest shareholders are Galaxy Jinhui Securities Asset Management Corporation Limited and Weihong Zhou, with an equal amount of shares to their name at 9.1%.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. 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 Zhejiang Jindun Fans

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

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.

It seems insiders own a significant proportion of Zhejiang Jindun Fans Co., Ltd. Insiders own CN¥1.9b worth of shares in the CN¥5.4b company. 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

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. 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

Our data indicates that Private Companies hold 4.6%, of the company's shares. 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 Jindun Fans better, we need to consider many other factors. For instance, we've identified 1 warning sign for Zhejiang Jindun Fans that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.