Anhui Anli Material Technology Co., Ltd.'s (SZSE:300218) largest shareholders are private companies who were rewarded as market cap surged CN¥492m last week

Key Insights

• Anhui Anli Material Technology's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 6 shareholders own 51% of the company
• 25% of Anhui Anli Material Technology is held by Institutions

A look at the shareholders of Anhui Anli Material Technology Co., Ltd. (SZSE:300218) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit CN¥3.4b market cap following a 17% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Anhui Anli Material Technology.

Check out our latest analysis for Anhui Anli Material Technology

What Does The Institutional Ownership Tell Us About Anhui Anli Material Technology?

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.

Anhui Anli Material Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Anhui Anli Material Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Anhui Anli Material Technology is not owned by hedge funds. Anhui Anli Technology Investment Group Co., Ltd. is currently the company's largest shareholder with 22% of shares outstanding. With 13% and 5.7% of the shares outstanding respectively, Hefei Industrial Investment Holding Co., Ltd. and Guotai Asset Management Company Limited are the second and third largest shareholders.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Anhui Anli Material Technology

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. 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.

Our most recent data indicates that insiders own less than 1% of Anhui Anli Material Technology Co., Ltd.. However, it's possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just CN¥3.4b, and the board has only CN¥15m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Anhui Anli Material Technology. 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

It seems that Private Companies own 39%, of the Anhui Anli Material Technology stock. 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 Anhui Anli Material Technology better, we need to consider many other factors. Be aware that Anhui Anli Material Technology is showing 2 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.