Private companies in GuiZhouYongJi Printing Co.,Ltd (SHSE:603058) are its biggest bettors, and their bets paid off as stock gained 11% last week

Key Insights

• The considerable ownership by private companies in GuiZhouYongJi PrintingLtd indicates that they collectively have a greater say in management and business strategy
• 54% of the business is held by the top 4 shareholders
• Insiders own 15% of GuiZhouYongJi PrintingLtd

A look at the shareholders of GuiZhouYongJi Printing Co.,Ltd (SHSE:603058) can tell us which group is most powerful. With 49% stake, private companies 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, private companies benefitted the most after the company's market cap rose by CN¥378m last week.

Let's delve deeper into each type of owner of GuiZhouYongJi PrintingLtd, beginning with the chart below.

View our latest analysis for GuiZhouYongJi PrintingLtd

What Does The Lack Of Institutional Ownership Tell Us About GuiZhouYongJi PrintingLtd?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. GuiZhouYongJi PrintingLtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in GuiZhouYongJi PrintingLtd. Looking at our data, we can see that the largest shareholder is Guizhou Yongji Holdings Co., Ltd. with 36% of shares outstanding. With 6.9% and 5.6% of the shares outstanding respectively, Guizhou Yunshang Printing Limited and Dai Xing Deng are the second and third largest shareholders. Dai Xing Deng, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of GuiZhouYongJi PrintingLtd

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.

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 GuiZhouYongJi Printing Co.,Ltd. Insiders own CN¥568m worth of shares in the CN¥3.7b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. 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 49%, of the GuiZhouYongJi PrintingLtd stock. 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 4 warning signs for GuiZhouYongJi PrintingLtd (2 shouldn't be ignored) that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com