Jinfa Labi Maternity & Baby Articles Co., Ltd's (SZSE:002762) market cap increased by CN¥333m, insiders receive a 54% cut

Key Insights

• Insiders appear to have a vested interest in Jinfa Labi Maternity & Baby Articles' growth, as seen by their sizeable ownership
• The top 2 shareholders own 53% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Jinfa Labi Maternity & Baby Articles Co., Ltd (SZSE:002762) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥333m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Jinfa Labi Maternity & Baby Articles.

View our latest analysis for Jinfa Labi Maternity & Baby Articles

What Does The Institutional Ownership Tell Us About Jinfa Labi Maternity & Baby Articles?

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.

Institutions have a very small stake in Jinfa Labi Maternity & Baby Articles. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Jinfa Labi Maternity & Baby Articles. Hao Liang Lin is currently the company's largest shareholder with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 26% and 0.6%, of the shares outstanding, respectively. Ruo Wen Lin, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jinfa Labi Maternity & Baby Articles

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.

Our most recent data indicates that insiders own the majority of Jinfa Labi Maternity & Baby Articles Co., Ltd. This means they can collectively make decisions for the company. That means they own CN¥1.3b worth of shares in the CN¥2.3b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. 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 43% stake in Jinfa Labi Maternity & Baby Articles. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jinfa Labi Maternity & Baby Articles better, we need to consider many other factors. Be aware that Jinfa Labi Maternity & Baby Articles is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.