While individual investors own 15% of Hunan Junxin Environmental Protection Co., Ltd. (SZSE:301109), private companies are its largest shareholders with 47% ownership

Key Insights

• The considerable ownership by private companies in Hunan Junxin Environmental Protection indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Hunan Junxin Environmental Protection Group Co., Ltd. with a 62% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Hunan Junxin Environmental Protection Co., Ltd. (SZSE:301109) can tell us which group is most powerful. With 47% stake, private companies possess the maximum shares in the company. 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 15% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Hunan Junxin Environmental Protection.

See our latest analysis for Hunan Junxin Environmental Protection

What Does The Institutional Ownership Tell Us About Hunan Junxin Environmental 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.

Less than 5% of Hunan Junxin Environmental Protection is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Hunan Junxin Environmental Protection. Our data shows that Hunan Junxin Environmental Protection Group Co., Ltd. is the largest shareholder with 62% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 5.3% and 4.6% of the stock. Yingpin He, who is the third-largest shareholder, also happens to hold the title of Vice Chairman. In addition, we found that Chaoqiang Leng, the CEO has 0.6% of the shares allocated to their name.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Hunan Junxin Environmental Protection

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Shareholders would probably be interested to learn that insiders own shares in Hunan Junxin Environmental Protection Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥736m worth of shares (at current prices). 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-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. 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 47%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Hunan Junxin Environmental Protection better, we need to consider many other factors. For example, we've discovered 2 warning signs for Hunan Junxin Environmental Protection (1 is significant!) that you should be aware of before investing here.

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.