Private companies are Anhui Hengyuan Coal Industry and Electricity Power Co.,Ltd's (SHSE:600971) biggest owners and were hit after market cap dropped CN¥480m

Key Insights

• Anhui Hengyuan Coal Industry and Electricity PowerLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Wanbei Coal-Electricity Group Co., Ltd. with a 55% stake
• Institutions own 15% of Anhui Hengyuan Coal Industry and Electricity PowerLtd

If you want to know who really controls Anhui Hengyuan Coal Industry and Electricity Power Co.,Ltd (SHSE:600971), then you'll have to look at the makeup of its share registry. With 55% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, private companies endured the biggest losses as the stock fell by 4.2%.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Hengyuan Coal Industry and Electricity PowerLtd.

Check out our latest analysis for Anhui Hengyuan Coal Industry and Electricity PowerLtd

What Does The Institutional Ownership Tell Us About Anhui Hengyuan Coal Industry and Electricity PowerLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Anhui Hengyuan Coal Industry and Electricity PowerLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Hengyuan Coal Industry and Electricity PowerLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Anhui Hengyuan Coal Industry and Electricity PowerLtd. Looking at our data, we can see that the largest shareholder is Wanbei Coal-Electricity Group Co., Ltd. with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 3.3% and 1.4%, of the shares outstanding, respectively.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Anhui Hengyuan Coal Industry and Electricity PowerLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Anhui Hengyuan Coal Industry and Electricity PowerLtd. 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.

Private Company Ownership

It seems that Private Companies own 55%, of the Anhui Hengyuan Coal Industry and Electricity PowerLtd stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Anhui Hengyuan Coal Industry and Electricity PowerLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Anhui Hengyuan Coal Industry and Electricity PowerLtd that you should be aware of before investing here.

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.