Individual investors among Zhejiang Weixing Industrial Development Co., Ltd.'s (SZSE:002003) largest shareholders, saw gain in holdings value after stock jumped 5.8% last week

Key Insights

• The considerable ownership by individual investors in Zhejiang Weixing Industrial Development indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 7 shareholders
• 17% of Zhejiang Weixing Industrial Development is held by insiders

To get a sense of who is truly in control of Zhejiang Weixing Industrial Development Co., Ltd. (SZSE:002003), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 33% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥877m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Weixing Industrial Development.

Check out our latest analysis for Zhejiang Weixing Industrial Development

What Does The Institutional Ownership Tell Us About Zhejiang Weixing Industrial Development?

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.

As you can see, institutional investors have a fair amount of stake in Zhejiang Weixing Industrial Development. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Zhejiang Weixing Industrial Development's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Zhejiang Weixing Industrial Development. Our data shows that Weixing Group Co.,Ltd. is the largest shareholder with 26% of shares outstanding. With 6.5% and 5.7% of the shares outstanding respectively, National Council for Social Security Fund and Kapeng Zhang are the second and third largest shareholders. Kapeng Zhang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 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 Zhejiang Weixing Industrial Development

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

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.

It seems insiders own a significant proportion of Zhejiang Weixing Industrial Development Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥2.7b stake in this CN¥16b business. 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-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 26%, 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Zhejiang Weixing Industrial Development .

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.