Individual investors in Weihai Guangwei Composites Co., Ltd. (SZSE:300699) are its biggest bettors, and their bets paid off as stock gained 10% last week

Key Insights

• Significant control over Weihai Guangwei Composites by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 10 investors have a majority stake in the company with 50% ownership
• Institutional ownership in Weihai Guangwei Composites is 19%

Every investor in Weihai Guangwei Composites Co., Ltd. (SZSE:300699) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, individual investors benefitted the most after the company's market cap rose by CN¥3.0b last week.

In the chart below, we zoom in on the different ownership groups of Weihai Guangwei Composites.

Check out our latest analysis for Weihai Guangwei Composites

What Does The Institutional Ownership Tell Us About Weihai Guangwei Composites?

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 Weihai Guangwei Composites. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Weihai Guangwei Composites' earnings history below. Of course, the future is what really matters.

Weihai Guangwei Composites is not owned by hedge funds. Our data shows that Weihai Guangwei Group Co. Ltd is the largest shareholder with 38% of shares outstanding. CITIC Private Equity Funds Management Co., Ltd. is the second largest shareholder owning 3.7% of common stock, and National Council for Social Security Fund holds about 1.7% of the company stock.

We also observed that the top 10 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Weihai Guangwei Composites

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can report that insiders do own shares in Weihai Guangwei Composites Co., Ltd.. The insiders have a meaningful stake worth CN¥724m. 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

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 38%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Weihai Guangwei Composites better, we need to consider many other factors. For example, we've discovered 2 warning signs for Weihai Guangwei Composites (1 shouldn't be ignored!) that you should be aware of before investing here.

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.