Private companies account for 48% of Zhejiang Weiming Environment Protection Co., Ltd.'s (SHSE:603568) ownership, while insiders account for 24%

Key Insights

• Zhejiang Weiming Environment Protection's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 2 investors have a majority stake in the company with 58% ownership
• Insiders own 24% of Zhejiang Weiming Environment Protection

If you want to know who really controls Zhejiang Weiming Environment Protection Co., Ltd. (SHSE:603568), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 48% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual insiders on the other hand have a 24% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

Let's delve deeper into each type of owner of Zhejiang Weiming Environment Protection, beginning with the chart below.

See our latest analysis for Zhejiang Weiming Environment Protection

What Does The Institutional Ownership Tell Us About Zhejiang Weiming Environment Protection?

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.

Zhejiang Weiming Environment Protection 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. 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 Zhejiang Weiming Environment Protection, (below). Of course, keep in mind that there are other factors to consider, too.

Zhejiang Weiming Environment Protection is not owned by hedge funds. Weiming Group Co., Ltd. is currently the largest shareholder, with 48% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 3.2%, of the shares outstanding, respectively. Guang Ming Xiang, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Zhejiang Weiming Environment Protection

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. 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.

Our information suggests that insiders maintain a significant holding in Zhejiang Weiming Environment Protection Co., Ltd.. It has a market capitalization of just CN¥37b, and insiders have CN¥8.9b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Zhejiang Weiming Environment Protection. 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 48%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Weiming Environment Protection better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Zhejiang Weiming Environment Protection .

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.