Shanghai Fosun Pharmaceutical (Group) Co., Ltd.'s (SHSE:600196) largest shareholders are retail investors with 49% ownership, private companies own 37%

Key Insights

• The considerable ownership by retail investors in Shanghai Fosun Pharmaceutical (Group) indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 50% of the company
• 15% of Shanghai Fosun Pharmaceutical (Group) is held by Institutions

Every investor in Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SHSE:600196) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And private companies on the other hand have a 37% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Shanghai Fosun Pharmaceutical (Group).

View our latest analysis for Shanghai Fosun Pharmaceutical (Group)

What Does The Institutional Ownership Tell Us About Shanghai Fosun Pharmaceutical (Group)?

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 Fosun Pharmaceutical (Group). 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shanghai Fosun Pharmaceutical (Group), (below). Of course, keep in mind that there are other factors to consider, too.

Shanghai Fosun Pharmaceutical (Group) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Fosun International Holdings Ltd. with 36% of shares outstanding. Perseverance Asset Management L.L.P. is the second largest shareholder owning 1.8% of common stock, and China Securities Finance Corp, Asset Management Arm holds about 1.5% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Shanghai Fosun Pharmaceutical (Group)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 Shanghai Fosun Pharmaceutical (Group) Co., Ltd. insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CN¥87m worth of shares (at current prices). It is always good to see at least some insider ownership, 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 49% stake in Shanghai Fosun Pharmaceutical (Group). 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

We can see that Private Companies own 37%, of the shares on issue. 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 Shanghai Fosun Pharmaceutical (Group) better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Shanghai Fosun Pharmaceutical (Group) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.