Retail investors invested in Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd (SHSE:600872) copped the brunt of last week's CN¥1.1b market cap decline

Key Insights

• The considerable ownership by retail investors in Jonjee Hi-Tech Industrial and Commercial HoldingLtd indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 48% of the company
• Institutional ownership in Jonjee Hi-Tech Industrial and Commercial HoldingLtd is 23%

A look at the shareholders of Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd (SHSE:600872) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors as a group endured the highest losses last week after market cap fell by CN¥1.1b.

Let's delve deeper into each type of owner of Jonjee Hi-Tech Industrial and Commercial HoldingLtd, beginning with the chart below.

View our latest analysis for Jonjee Hi-Tech Industrial and Commercial HoldingLtd

What Does The Institutional Ownership Tell Us About Jonjee Hi-Tech Industrial and Commercial HoldingLtd?

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 Jonjee Hi-Tech Industrial and Commercial HoldingLtd. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Jonjee Hi-Tech Industrial and Commercial HoldingLtd's earnings history below. Of course, the future is what really matters.

Jonjee Hi-Tech Industrial and Commercial HoldingLtd is not owned by hedge funds. The company's largest shareholder is Zhongshan Torch Group Co., Ltd., with ownership of 11%. Zhongshan Runtian Investment Co., Ltd. is the second largest shareholder owning 8.0% of common stock, and Perseverance Asset Management L.L.P. holds about 4.7% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Jonjee Hi-Tech Industrial and Commercial HoldingLtd

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it's a big company, and the insiders own CN¥481k worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Jonjee Hi-Tech Industrial and Commercial HoldingLtd. 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 28%, of the Jonjee Hi-Tech Industrial and Commercial HoldingLtd 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 Jonjee Hi-Tech Industrial and Commercial HoldingLtd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Jonjee Hi-Tech Industrial and Commercial HoldingLtd you should be aware of, and 2 of them make us uncomfortable.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.