Hunan Yuneng New Energy Battery Material Co.,Ltd.'s (SZSE:301358) largest shareholders are private companies who were rewarded as market cap surged CN¥1.5b last week

Key Insights

• The considerable ownership by private companies in Hunan Yuneng New Energy Battery MaterialLtd indicates that they collectively have a greater say in management and business strategy
• A total of 8 investors have a majority stake in the company with 50% ownership
• 16% of Hunan Yuneng New Energy Battery MaterialLtd is held by Institutions

Every investor in Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥22b market cap following a 7.2% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Hunan Yuneng New Energy Battery MaterialLtd.

See our latest analysis for Hunan Yuneng New Energy Battery MaterialLtd

What Does The Institutional Ownership Tell Us About Hunan Yuneng New Energy Battery MaterialLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Hunan Yuneng New Energy Battery MaterialLtd 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. 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 Hunan Yuneng New Energy Battery MaterialLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Hunan Yuneng New Energy Battery MaterialLtd. Looking at our data, we can see that the largest shareholder is Xiangtan Electric Manufacturing Group Co., Ltd. with 10% of shares outstanding. The second and third largest shareholders are Shanghai Jinsheng New Material Technology Co., Ltd. and Contemporary Amperex Technology Co., Limited, with an equal amount of shares to their name at 7.9%.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Hunan Yuneng New Energy Battery 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. 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.

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.

Our most recent data indicates that insiders own some shares in Hunan Yuneng New Energy Battery Material Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥572m 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, who are usually individual investors, hold a 26% stake in Hunan Yuneng New Energy Battery MaterialLtd. 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

It seems that Private Companies own 36%, of the Hunan Yuneng New Energy Battery MaterialLtd 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.

Public Company Ownership

It appears to us that public companies own 18% of Hunan Yuneng New Energy Battery MaterialLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hunan Yuneng New Energy Battery MaterialLtd better, we need to consider many other factors. Take risks for example - Hunan Yuneng New Energy Battery MaterialLtd has 2 warning signs we think you should be aware of.

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.