Yifeng Pharmacy Chain Co., Ltd.'s (SHSE:603939) largest shareholders are individual investors with 24% ownership, private companies own 23%

Key Insights

• Yifeng Pharmacy Chain's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 52% ownership
• Insiders own 12% of Yifeng Pharmacy Chain

If you want to know who really controls Yifeng Pharmacy Chain Co., Ltd. (SHSE:603939), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 24% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies, on the other hand, account for 23% of the company's stockholders.

Let's delve deeper into each type of owner of Yifeng Pharmacy Chain, beginning with the chart below.

See our latest analysis for Yifeng Pharmacy Chain

What Does The Institutional Ownership Tell Us About Yifeng Pharmacy Chain?

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.

Yifeng Pharmacy Chain already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Yifeng Pharmacy Chain's earnings history below. Of course, the future is what really matters.

Yifeng Pharmacy Chain is not owned by hedge funds. The company's largest shareholder is Ningbo Meishan Free Trade Zone Jikang Enterprise Management Partnership Enterprise (LP, with ownership of 22%. Capital Today is the second largest shareholder owning 19% of common stock, and Gao Yi holds about 12% of the company stock. Gao Yi, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Yifeng Pharmacy Chain

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.

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.

It seems insiders own a significant proportion of Yifeng Pharmacy Chain Co., Ltd.. Insiders own CN¥3.6b worth of shares in the CN¥30b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 24% 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

Private equity firms hold a 19% stake in Yifeng Pharmacy Chain. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 23%, of the Yifeng Pharmacy Chain stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Yifeng Pharmacy Chain has 1 warning sign we think you should be aware of.

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.