Zhangzhou Pientzehuang Pharmaceutical., Ltd's (SHSE:600436) largest shareholders are private companies with 57% ownership, individual investors own 30%

Key Insights

• Significant control over Zhangzhou Pientzehuang Pharmaceutical by private companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Zhang Zhou Jiu Long Jiang Group Co., Ltd. with a 55% stake
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Zhangzhou Pientzehuang Pharmaceutical., Ltd (SHSE:600436) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 30% of the company’s shareholders.

Let's delve deeper into each type of owner of Zhangzhou Pientzehuang Pharmaceutical, beginning with the chart below.

View our latest analysis for Zhangzhou Pientzehuang Pharmaceutical

What Does The Institutional Ownership Tell Us About Zhangzhou Pientzehuang Pharmaceutical?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Zhangzhou Pientzehuang Pharmaceutical does have institutional investors; and they hold a good portion of the company's stock. 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 Zhangzhou Pientzehuang Pharmaceutical'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 Zhangzhou Pientzehuang Pharmaceutical. The company's largest shareholder is Zhang Zhou Jiu Long Jiang Group Co., Ltd., with ownership of 55%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 4.5% and 1.9%, of the shares outstanding, respectively.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Zhangzhou Pientzehuang Pharmaceutical

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in Zhangzhou Pientzehuang Pharmaceutical., Ltd. The insiders have a meaningful stake worth CN¥5.6b. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Zhangzhou Pientzehuang Pharmaceutical. 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

It seems that Private Companies own 57%, of the Zhangzhou Pientzehuang Pharmaceutical stock. 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 Zhangzhou Pientzehuang Pharmaceutical better, we need to consider many other factors. Be aware that Zhangzhou Pientzehuang Pharmaceutical is showing 1 warning sign in our investment analysis , you should know about...

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.