Stock Analysis
Retail investors are Snowsky Salt Industry Group CO.,LTD's (SHSE:600929) biggest owners and were rewarded after market cap rose by CN¥448m last week
Key Insights
- Significant control over Snowsky Salt Industry GroupLTD by retail investors implies that the general public has more power to influence management and governance-related decisions
- The top 25 shareholders own 45% of the company
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Snowsky Salt Industry Group CO.,LTD (SHSE:600929) can tell us which group is most powerful. With 55% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, retail investors benefitted the most after the company's market cap rose by CN¥448m last week.
In the chart below, we zoom in on the different ownership groups of Snowsky Salt Industry GroupLTD.
View our latest analysis for Snowsky Salt Industry GroupLTD
What Does The Institutional Ownership Tell Us About Snowsky Salt Industry GroupLTD?
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.
Snowsky Salt Industry GroupLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Snowsky Salt Industry GroupLTD, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Snowsky Salt Industry GroupLTD. Hunan Salt Industry Group Co., Ltd is currently the company's largest shareholder with 28% of shares outstanding. With 5.8% and 1.6% of the shares outstanding respectively, Hunan Light Salt Shengfu Venture Capital Management Co., Ltd. and Hunan Light Salt Venture Capital Management Co., Ltd. are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Snowsky Salt Industry GroupLTD
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
We can see that insiders own shares in Snowsky Salt Industry Group CO.,LTD. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥142m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
General Public Ownership
The general public -- including retail investors -- own 55% of Snowsky Salt Industry GroupLTD. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Equity Ownership
Private equity firms hold a 5.8% stake in Snowsky Salt Industry GroupLTD. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Private Company Ownership
We can see that Private Companies own 31%, 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Snowsky Salt Industry GroupLTD better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Snowsky Salt Industry GroupLTD , and understanding them should be part of your investment process.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
About SHSE:600929
Snowsky Salt Industry GroupLTD
Engages in production and sale of salt and salt products.