Private companies among Zhejiang Jingsheng Mechanical & Electrical Co., Ltd.'s (SZSE:300316) largest stockholders and were hit after last week's 3.9% price drop

Key Insights

• The considerable ownership by private companies in Zhejiang Jingsheng Mechanical & Electrical indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 50% of the company
• Institutions own 19% of Zhejiang Jingsheng Mechanical & Electrical

If you want to know who really controls Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. (SZSE:300316), then you'll have to look at the makeup of its share registry. With 47% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥38b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Zhejiang Jingsheng Mechanical & Electrical.

View our latest analysis for Zhejiang Jingsheng Mechanical & Electrical

What Does The Institutional Ownership Tell Us About Zhejiang Jingsheng Mechanical & Electrical?

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.

Zhejiang Jingsheng Mechanical & Electrical 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. 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 Zhejiang Jingsheng Mechanical & Electrical's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Zhejiang Jingsheng Mechanical & Electrical. Looking at our data, we can see that the largest shareholder is Shangyu JinLun Investment Management Consulting Co., Ltd. with 47% of shares outstanding. Minxiu Qiu is the second largest shareholder owning 2.9% of common stock, and Jianwei Cao holds about 2.7% of the company stock. Jianwei Cao, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Jun He, the CEO has 0.6% of the shares allocated to their name.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Zhejiang Jingsheng Mechanical & Electrical

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.

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 most recent data indicates that insiders own some shares in Zhejiang Jingsheng Mechanical & Electrical Co., Ltd.. The insiders have a meaningful stake worth CN¥3.0b. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 47%, of the Zhejiang Jingsheng Mechanical & Electrical stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zhejiang Jingsheng Mechanical & Electrical better, we need to consider many other factors. For example, we've discovered 2 warning signs for Zhejiang Jingsheng Mechanical & Electrical (1 is a bit unpleasant!) that you should be aware of before investing here.

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.