Stock Analysis

Shenzhen S-king Intelligent Equipment Co., Ltd.'s (SHSE:688328) last week's 11% decline must have disappointed individual investors who have a significant stake

SHSE:688328
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Key Insights

  • The considerable ownership by individual investors in Shenzhen S-king Intelligent Equipment indicates that they collectively have a greater say in management and business strategy
  • A total of 11 investors have a majority stake in the company with 51% ownership
  • 33% of Shenzhen S-king Intelligent Equipment is held by insiders

Every investor in Shenzhen S-king Intelligent Equipment Co., Ltd. (SHSE:688328) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 38% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 11% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 33% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Shenzhen S-king Intelligent Equipment.

Check out our latest analysis for Shenzhen S-king Intelligent Equipment

ownership-breakdown
SHSE:688328 Ownership Breakdown January 4th 2025

What Does The Institutional Ownership Tell Us About Shenzhen S-king Intelligent Equipment?

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.

Shenzhen S-king Intelligent Equipment 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 Shenzhen S-king Intelligent Equipment, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:688328 Earnings and Revenue Growth January 4th 2025

Hedge funds don't have many shares in Shenzhen S-king Intelligent Equipment. Looking at our data, we can see that the largest shareholder is the CEO Yihong Huang with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.4% and 3.5% of the stock. Interestingly, the third-largest shareholder, Xinming Zhang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Shenzhen S-king Intelligent Equipment

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.

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 a reasonable proportion of Shenzhen S-king Intelligent Equipment Co., Ltd.. Insiders have a CN¥435m stake in this CN¥1.3b 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

The general public, who are usually individual investors, hold a 38% stake in Shenzhen S-king Intelligent Equipment. 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

Our data indicates that Private Companies hold 5.4%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen S-king Intelligent Equipment better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Shenzhen S-king Intelligent Equipment (at least 2 which are a bit concerning) , 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.