CEO Jianwei Dai, Shanghai General Healthy Information and Technology Co., Ltd.'s (SHSE:605186) largest shareholder sees value of holdings go down 13% after recent drop

Key Insights

• Significant insider control over Shanghai General Healthy Information and Technology implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 50% ownership
• 24% of Shanghai General Healthy Information and Technology is held by Institutions

A look at the shareholders of Shanghai General Healthy Information and Technology Co., Ltd. (SHSE:605186) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by CN¥564m.

Let's take a closer look to see what the different types of shareholders can tell us about Shanghai General Healthy Information and Technology.

View our latest analysis for Shanghai General Healthy Information and Technology

What Does The Institutional Ownership Tell Us About Shanghai General Healthy Information and 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.

As you can see, institutional investors have a fair amount of stake in Shanghai General Healthy Information and Technology. 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 Shanghai General Healthy Information and Technology's earnings history below. Of course, the future is what really matters.

Shanghai General Healthy Information and Technology is not owned by hedge funds. With a 42% stake, CEO Jianwei Dai is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 8.3% and 2.7%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Shanghai General Healthy Information and Technology

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

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.

It seems insiders own a significant proportion of Shanghai General Healthy Information and Technology Co., Ltd.. Insiders own CN¥1.6b worth of shares in the CN¥3.9b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai General Healthy Information and Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 8.3%, of the Shanghai General Healthy Information and Technology 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Shanghai General Healthy Information and Technology , and understanding them should be part of your investment process.

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.