While individual investors own 32% of Zhejiang JIULI Hi-tech Metals Co.,Ltd (SZSE:002318), private companies are its largest shareholders with 35% ownership

Key Insights

• Significant control over Zhejiang JIULI Hi-tech MetalsLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 5 investors have a majority stake in the company with 51% ownership
• 22% of Zhejiang JIULI Hi-tech MetalsLtd is held by Institutions

If you want to know who really controls Zhejiang JIULI Hi-tech Metals Co.,Ltd (SZSE:002318), then you'll have to look at the makeup of its share registry. With 35% 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.

Meanwhile, individual investors make up 32% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Zhejiang JIULI Hi-tech MetalsLtd.

Check out our latest analysis for Zhejiang JIULI Hi-tech MetalsLtd

What Does The Institutional Ownership Tell Us About Zhejiang JIULI Hi-tech MetalsLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Zhejiang JIULI Hi-tech MetalsLtd. 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. 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 Zhejiang JIULI Hi-tech MetalsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Zhejiang JIULI Hi-tech MetalsLtd. Jiuli Group Co., Ltd. is currently the largest shareholder, with 35% of shares outstanding. With 5.9% and 4.8% of the shares outstanding respectively, National Council for Social Security Fund and China Southern Asset Management Co., Ltd. are the second and third largest shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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

Insider Ownership Of Zhejiang JIULI Hi-tech MetalsLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 report that insiders do own shares in Zhejiang JIULI Hi-tech Metals Co.,Ltd. The insiders have a meaningful stake worth CN¥690m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang JIULI Hi-tech MetalsLtd. 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

We can see that Private Companies own 35%, 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 Zhejiang JIULI Hi-tech MetalsLtd better, we need to consider many other factors. Take risks for example - Zhejiang JIULI Hi-tech MetalsLtd has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.