Private companies account for 54% of CNGR Advanced Material Co.,Ltd.'s (SZSE:300919) ownership, while individual investors account for 22%

Key Insights

• CNGR Advanced MaterialLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 52% of the company is held by a single shareholder (Hunan Zhongwei Holding Group Co.,Ltd.)
• 19% of CNGR Advanced MaterialLtd is held by Institutions

A look at the shareholders of CNGR Advanced Material Co.,Ltd. (SZSE:300919) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 54% 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 22% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about CNGR Advanced MaterialLtd.

View our latest analysis for CNGR Advanced MaterialLtd

What Does The Institutional Ownership Tell Us About CNGR Advanced MaterialLtd?

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 CNGR Advanced MaterialLtd. 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 CNGR Advanced MaterialLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

CNGR Advanced MaterialLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hunan Zhongwei Holding Group Co.,Ltd. with 52% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.2% and 1.8% of the shares outstanding respectively, Weiming Deng and Tongren Hongxin Chengda Enterprise Management Consulting Partnership (Limited Partnership) are the second and third largest shareholders. Weiming Deng, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 CNGR Advanced MaterialLtd

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.

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.

We can report that insiders do own shares in CNGR Advanced Material Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥1.3b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 54%, 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 CNGR Advanced MaterialLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for CNGR Advanced MaterialLtd (of which 1 shouldn't be ignored!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.