Xi'an Sinofuse Electric Co., Ltd.'s (SZSE:301031) most bullish insider, CEO Guangwen Fang must be pleased with the recent 8.6% gain

Key Insights

• Xi'an Sinofuse Electric's significant insider ownership suggests inherent interests in company's expansion
• A total of 9 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Xi'an Sinofuse Electric is 22%

A look at the shareholders of Xi'an Sinofuse Electric Co., Ltd. (SZSE:301031) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥551m last week.

In the chart below, we zoom in on the different ownership groups of Xi'an Sinofuse Electric.

View our latest analysis for Xi'an Sinofuse Electric

What Does The Institutional Ownership Tell Us About Xi'an Sinofuse Electric?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Xi'an Sinofuse Electric already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Xi'an Sinofuse Electric's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Xi'an Sinofuse Electric. Looking at our data, we can see that the largest shareholder is the CEO Guangwen Fang with 14% of shares outstanding. With 6.7% and 5.9% of the shares outstanding respectively, Xiaoguang Shi and Xi'an Zhongyu Enterprise Management Consulting Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Interestingly, the second-largest shareholder, Xiaoguang Shi is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Xi'an Sinofuse Electric

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Xi'an Sinofuse Electric Co., Ltd.. Insiders own CN¥2.6b worth of shares in the CN¥7.0b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xi'an Sinofuse Electric. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 11%, of the shares on issue. 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.

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.

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.