Jason Furniture (Hangzhou) Co.,Ltd.'s (SHSE:603816) market cap dropped CN¥1.1b last week; individual investors who hold 44% were hit as were institutions

Key Insights

• Significant control over Jason Furniture (Hangzhou)Ltd by private companies implies that the general public has more power to influence management and governance-related decisions
• 53% of the business is held by the top 4 shareholders
• Institutional ownership in Jason Furniture (Hangzhou)Ltd is 23%

To get a sense of who is truly in control of Jason Furniture (Hangzhou) Co.,Ltd. (SHSE:603816), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 44% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 23% shares weren’t spared from last week’s CN¥1.1b market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Jason Furniture (Hangzhou)Ltd, beginning with the chart below.

Check out our latest analysis for Jason Furniture (Hangzhou)Ltd

What Does The Institutional Ownership Tell Us About Jason Furniture (Hangzhou)Ltd?

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.

Jason Furniture (Hangzhou)Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Jason Furniture (Hangzhou)Ltd's earnings history below. Of course, the future is what really matters.

Jason Furniture (Hangzhou)Ltd is not owned by hedge funds. Ningbo Yingfeng Ruihe Investment Management Co., Ltd. is currently the company's largest shareholder with 30% of shares outstanding. Kuka Group Company Limited is the second largest shareholder owning 13% of common stock, and Jiang Sheng Gu holds about 5.1% of the company stock. Jiang Sheng Gu, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Additionally, the company's CEO Dong Lai Li directly holds 2.1% of the total shares outstanding.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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

Insider Ownership Of Jason Furniture (Hangzhou)Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Jason Furniture (Hangzhou) Co.,Ltd.. The insiders have a meaningful stake worth CN¥1.8b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 5.1%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 44%, of the shares on issue. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jason Furniture (Hangzhou)Ltd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Jason Furniture (Hangzhou)Ltd that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.