Institutions own 22% of Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358) shares but private companies control 36% of the company

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
• 22% of Hunan Yuneng New Energy Battery MaterialLtd is held by Institutions

To get a sense of who is truly in control of Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358), it is important to understand the ownership structure of the business. With 36% stake, private companies 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.

Meanwhile, institutions make up 22% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

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

Check out our latest analysis for Hunan Yuneng New Energy Battery MaterialLtd

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

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 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. 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.

Hunan Yuneng New Energy Battery MaterialLtd is not owned by hedge funds. The company's largest shareholder is Xiangtan Electric Manufacturing Group Co., Ltd., with ownership of 10%. 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%.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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.

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.

Our most recent data indicates that insiders own some shares in Hunan Yuneng New Energy Battery Material Co.,Ltd.. The insiders have a meaningful stake worth CN¥889m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in Hunan Yuneng New Energy Battery MaterialLtd. 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

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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Hunan Yuneng New Energy Battery MaterialLtd (of which 1 is concerning!) you should know about.

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.