Retail investors invested in Shanghai Hajime Advanced Material Technology Co., Ltd. (SZSE:301000) copped the brunt of last week's CN¥557m market cap decline

Key Insights

• Shanghai Hajime Advanced Material Technology's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 42% of the business is held by the top 17 shareholders
• Institutions own 12% of Shanghai Hajime Advanced Material Technology

If you want to know who really controls Shanghai Hajime Advanced Material Technology Co., Ltd. (SZSE:301000), then you'll have to look at the makeup of its share registry. With 58% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 15% decline in share price, retail investors suffered the most losses.

Let's delve deeper into each type of owner of Shanghai Hajime Advanced Material Technology, beginning with the chart below.

View our latest analysis for Shanghai Hajime Advanced Material Technology

What Does The Institutional Ownership Tell Us About Shanghai Hajime Advanced Material Technology?

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.

As you can see, institutional investors have a fair amount of stake in Shanghai Hajime Advanced Material Technology. 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. 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 Shanghai Hajime Advanced Material Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Shanghai Hajime Advanced Material Technology. Ningbo Meishan Free Trade Port Zone Baizhao Investment Management Partnership Enterprise (LP) is currently the company's largest shareholder with 7.5% of shares outstanding. The second and third largest shareholders are Xionghui Shao and Huzhou Xuanhe Industrial Investment Co., Ltd., with an equal amount of shares to their name at 7.5%. Xionghui Shao, 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 17 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Shanghai Hajime Advanced Material Technology

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.

Our most recent data indicates that insiders own some shares in Shanghai Hajime Advanced Material Technology Co., Ltd.. As individuals, the insiders collectively own CN¥242m worth of the CN¥3.2b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 58% stake in Shanghai Hajime Advanced Material Technology, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 22%, 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 Shanghai Hajime Advanced Material Technology better, we need to consider many other factors. Be aware that Shanghai Hajime Advanced Material Technology is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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.

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.