Yingkou Jinchen Machinery Co., Ltd.'s (SHSE:603396) market cap up CN¥667m last week, benefiting both individual investors who own 45% as well as insiders

Key Insights

• Significant control over Yingkou Jinchen Machinery by individual investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 9 shareholders
• 39% of Yingkou Jinchen Machinery is held by insiders

A look at the shareholders of Yingkou Jinchen Machinery Co., Ltd. (SHSE:603396) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week’s CN¥667m market cap gain, insiders too had a 39% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Yingkou Jinchen Machinery.

See our latest analysis for Yingkou Jinchen Machinery

What Does The Institutional Ownership Tell Us About Yingkou Jinchen Machinery?

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.

Yingkou Jinchen Machinery already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Yingkou Jinchen Machinery, (below). Of course, keep in mind that there are other factors to consider, too.

Yingkou Jinchen Machinery is not owned by hedge funds. With a 36% stake, CEO Yisheng Li is the largest shareholder. With 3.9% and 2.2% of the shares outstanding respectively, Beijing Jinchen Yingzhen Enterprise Management Partnership Enterprise (Limited Partnership) and Yan Yang are the second and third largest shareholders. Interestingly, the third-largest shareholder, Yan Yang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We also observed that the top 9 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.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Yingkou Jinchen Machinery

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

Our information suggests that insiders maintain a significant holding in Yingkou Jinchen Machinery Co., Ltd.. Insiders have a CN¥1.5b stake in this CN¥3.8b business. 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 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yingkou Jinchen Machinery. 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 3.9%, of the Yingkou Jinchen Machinery 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Yingkou Jinchen Machinery (at least 1 which is significant) , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.