JCHX Mining Management Co.,Ltd.'s (SHSE:603979) biggest owners are private companies who got richer after stock soared 11% last week

Key Insights

• The considerable ownership by private companies in JCHX Mining ManagementLtd indicates that they collectively have a greater say in management and business strategy
• The top 6 shareholders own 51% of the company
• Institutions own 20% of JCHX Mining ManagementLtd

To get a sense of who is truly in control of JCHX Mining Management Co.,Ltd. (SHSE:603979), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥3.8b last week.

Let's take a closer look to see what the different types of shareholders can tell us about JCHX Mining ManagementLtd.

View our latest analysis for JCHX Mining ManagementLtd

What Does The Institutional Ownership Tell Us About JCHX Mining ManagementLtd?

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.

JCHX Mining ManagementLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see JCHX Mining ManagementLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in JCHX Mining ManagementLtd. JCHX Group Co., Ltd. is currently the company's largest shareholder with 39% of shares outstanding. For context, the second largest shareholder holds about 4.1% of the shares outstanding, followed by an ownership of 2.2% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of JCHX Mining ManagementLtd

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. 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.

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 JCHX Mining Management Co.,Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥769m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in JCHX Mining ManagementLtd. 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

Our data indicates that Private Companies hold 43%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand JCHX Mining ManagementLtd better, we need to consider many other factors. Be aware that JCHX Mining ManagementLtd is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.