Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd.'s (SHSE:600389) largest shareholders are retail investors who were rewarded as market cap surged CN¥396m last week

Key Insights

• Nantong Jiangshan Agrochemical & ChemicalsLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 18 shareholders
• 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 Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (SHSE:600389), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥396m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Nantong Jiangshan Agrochemical & ChemicalsLtd.

View our latest analysis for Nantong Jiangshan Agrochemical & ChemicalsLtd

What Does The Institutional Ownership Tell Us About Nantong Jiangshan Agrochemical & ChemicalsLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Nantong Jiangshan Agrochemical & ChemicalsLtd. 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. 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 Nantong Jiangshan Agrochemical & ChemicalsLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nantong Jiangshan Agrochemical & ChemicalsLtd. The company's largest shareholder is Nantong Industries Holding Group Co.Ltd., with ownership of 29%. Sichuan Fuhua Agricultural Investment Group is the second largest shareholder owning 6.1% of common stock, and Leshan Wutongqiao District Development Industrial Investment Co., Ltd. holds about 5.1% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of Nantong Jiangshan Agrochemical & ChemicalsLtd

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd.. In their own names, insiders own CN¥121m worth of stock in the CN¥5.9b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 49% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nantong Jiangshan Agrochemical & ChemicalsLtd. 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

Our data indicates that Private Companies hold 40%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Nantong Jiangshan Agrochemical & ChemicalsLtd better, we need to consider many other factors. Take risks for example - Nantong Jiangshan Agrochemical & ChemicalsLtd has 3 warning signs we think 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.