Shanghai General Healthy Information and Technology Co., Ltd. (SHSE:605186) CEO Jianwei Dai, the company's largest shareholder sees 11% reduction in holdings value

Key Insights

• Insiders appear to have a vested interest in Shanghai General Healthy Information and Technology's growth, as seen by their sizeable ownership
• 50% of the business is held by the top 2 shareholders
• Institutional ownership in Shanghai General Healthy Information and Technology is 12%

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. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to CN¥2.6b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Shanghai General Healthy Information and Technology, beginning with the chart below.

See our latest analysis for Shanghai General Healthy Information and Technology

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Shanghai General Healthy Information and Technology does have institutional investors; and they hold a good portion of the company's stock. 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 Shanghai General Healthy Information and Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shanghai General Healthy Information and Technology. Looking at our data, we can see that the largest shareholder is the CEO Jianwei Dai with 42% of shares outstanding. Shanghai Jianqu Investment Management Co., Ltd. is the second largest shareholder owning 8.3% of common stock, and Genertec Investment Managers Ltd. holds about 1.5% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

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.

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.

Our information suggests that insiders maintain a significant holding in Shanghai General Healthy Information and Technology Co., Ltd.. It has a market capitalization of just CN¥2.6b, and insiders have CN¥1.1b worth of shares in their own names. 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 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Shanghai General Healthy Information and Technology. 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 8.3%, of the Shanghai General Healthy Information and Technology 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:

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. Case in point: We've spotted 2 warning signs for Shanghai General Healthy Information and Technology 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.