Private companies are Zhejiang AngLiKang Pharmaceutical CO.,LTD.'s (SZSE:002940) biggest owners and were rewarded after market cap rose by CN¥320m last week

Key Insights

• Significant control over Zhejiang AngLiKang PharmaceuticalLTD by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 4 shareholders own 55% of the company
• Insider ownership in Zhejiang AngLiKang PharmaceuticalLTD is 12%

If you want to know who really controls Zhejiang AngLiKang Pharmaceutical CO.,LTD. (SZSE:002940), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 36% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥2.8b market cap following a 13% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Zhejiang AngLiKang PharmaceuticalLTD.

See our latest analysis for Zhejiang AngLiKang PharmaceuticalLTD

What Does The Institutional Ownership Tell Us About Zhejiang AngLiKang PharmaceuticalLTD?

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.

We can see that Zhejiang AngLiKang PharmaceuticalLTD does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Zhejiang AngLiKang PharmaceuticalLTD's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhejiang AngLiKang PharmaceuticalLTD. Our data shows that Shengzhou Juntai Investment Co., Ltd. is the largest shareholder with 36% of shares outstanding. With 7.1% and 6.2% of the shares outstanding respectively, Lion Fund Management Co. Ltd. and Guotai Asset Management Company Limited are the second and third largest shareholders.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Zhejiang AngLiKang PharmaceuticalLTD

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.

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 a reasonable proportion of Zhejiang AngLiKang Pharmaceutical CO.,LTD.. Insiders own CN¥350m worth of shares in the CN¥2.8b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhejiang AngLiKang PharmaceuticalLTD. 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

Our data indicates that Private Companies hold 36%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Zhejiang AngLiKang PharmaceuticalLTD that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.