Stock Analysis

Private companies among WEILONG GRAPE WINE CO., Ltd's (SHSE:603779) largest shareholders, saw gain in holdings value after stock jumped 13% last week

SHSE:603779
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Key Insights

  • Significant control over WEILONG GRAPE WINE by private companies implies that the general public has more power to influence management and governance-related decisions
  • The top 4 shareholders own 51% of the company
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of WEILONG GRAPE WINE CO., Ltd (SHSE:603779), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies were the biggest beneficiaries of last week’s 13% gain.

In the chart below, we zoom in on the different ownership groups of WEILONG GRAPE WINE.

Check out our latest analysis for WEILONG GRAPE WINE

ownership-breakdown
SHSE:603779 Ownership Breakdown January 30th 2025

What Does The Institutional Ownership Tell Us About WEILONG GRAPE WINE?

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 WEILONG GRAPE WINE. 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 WEILONG GRAPE WINE, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:603779 Earnings and Revenue Growth January 30th 2025

Hedge funds don't have many shares in WEILONG GRAPE WINE. The company's largest shareholder is Shandong Jiuhe Yuntou Technology Development Co., Ltd., with ownership of 19%. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 8.0% by the third-largest shareholder.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. 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 WEILONG GRAPE WINE

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own some shares in WEILONG GRAPE WINE CO., Ltd. In their own names, insiders own CN¥223m worth of stock in the CN¥2.6b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in WEILONG GRAPE WINE. 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 52%, of the WEILONG GRAPE WINE 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that WEILONG GRAPE WINE is showing 1 warning sign 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.

Valuation is complex, but we're here to simplify it.

Discover if WEILONG GRAPE WINE might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

About SHSE:603779

WEILONG GRAPE WINE

Processes, produces, and sells wines in China.

Adequate balance sheet and overvalued.

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