Individual investors are Jiangyin Jianghua Microelectronics Materials Co., Ltd's (SHSE:603078) biggest owners and were rewarded after market cap rose by CN¥532m last week

Key Insights

• The considerable ownership by individual investors in Jiangyin Jianghua Microelectronics Materials indicates that they collectively have a greater say in management and business strategy
• The top 19 shareholders own 49% of the company
• Insider ownership in Jiangyin Jianghua Microelectronics Materials is 21%

If you want to know who really controls Jiangyin Jianghua Microelectronics Materials Co., Ltd (SHSE:603078), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively scored the highest last week as the company hit CN¥5.0b market cap following a 12% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangyin Jianghua Microelectronics Materials.

View our latest analysis for Jiangyin Jianghua Microelectronics Materials

What Does The Institutional Ownership Tell Us About Jiangyin Jianghua Microelectronics Materials?

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.

Since institutions own only a small portion of Jiangyin Jianghua Microelectronics Materials, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Jiangyin Jianghua Microelectronics Materials. The company's largest shareholder is Zibo Xingheng Tusong Holdings Co., Ltd, with ownership of 24%. For context, the second largest shareholder holds about 17% of the shares outstanding, followed by an ownership of 2.5% by the third-largest shareholder. Fuhua Yin, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A deeper look at our ownership data shows that the top 19 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangyin Jianghua Microelectronics Materials

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.

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.

Our information suggests that insiders maintain a significant holding in Jiangyin Jianghua Microelectronics Materials Co., Ltd. It has a market capitalization of just CN¥5.0b, and insiders have CN¥1.0b 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

The general public -- including retail investors -- own 51% of Jiangyin Jianghua Microelectronics Materials. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 26%, of the company's shares. 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 Jiangyin Jianghua Microelectronics Materials better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.

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

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.