Shenzhen New Industries Biomedical Engineering Co., Ltd. (SZSE:300832) stock most popular amongst private companies who own 27%, while individual investors hold 23%

Key Insights

• Shenzhen New Industries Biomedical Engineering's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 3 shareholders own 53% of the company
• 19% of Shenzhen New Industries Biomedical Engineering is held by insiders

Every investor in Shenzhen New Industries Biomedical Engineering Co., Ltd. (SZSE:300832) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 27% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 23% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen New Industries Biomedical Engineering.

See our latest analysis for Shenzhen New Industries Biomedical Engineering

What Does The Institutional Ownership Tell Us About Shenzhen New Industries Biomedical Engineering?

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 Shenzhen New Industries Biomedical Engineering does have institutional investors; and they hold a good portion of the company's stock. 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 Shenzhen New Industries Biomedical Engineering's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Shenzhen New Industries Biomedical Engineering. Tibet New Industry Investment Management Co., Ltd. is currently the largest shareholder, with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 13% of the stock. Rao Wei, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 3 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shenzhen New Industries Biomedical Engineering

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Shenzhen New Industries Biomedical Engineering Co., Ltd.. It has a market capitalization of just CN¥60b, and insiders have CN¥11b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

With a stake of 13%, private equity firms could influence the Shenzhen New Industries Biomedical Engineering board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

We can see that Private Companies own 27%, of the shares on issue. 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. For instance, we've identified 1 warning sign for Shenzhen New Industries Biomedical Engineering that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.