Zhejiang Jingsheng Mechanical & Electrical Co., Ltd.'s (SZSE:300316) largest shareholders are private companies with 47% ownership, individual investors own 28%

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
• 50% of the business is held by the top 2 shareholders
• Institutional ownership in Zhejiang Jingsheng Mechanical & Electrical is 16%

A look at the shareholders of Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. (SZSE:300316) can tell us which group is most powerful. The group holding the most number of shares in the company, around 47% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual investors on the other hand have a 28% ownership in the company.

In the chart below, we zoom in on the different ownership groups of 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?

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 Zhejiang Jingsheng Mechanical & Electrical 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. 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 Zhejiang Jingsheng Mechanical & Electrical, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Zhejiang Jingsheng Mechanical & Electrical. Shangyu JinLun Investment Management Consulting Co., Ltd. is currently the largest shareholder, with 47% of shares outstanding. For context, the second largest shareholder holds about 2.9% of the shares outstanding, followed by an ownership of 2.7% by the third-largest shareholder. 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.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zhejiang Jingsheng Mechanical & Electrical

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.

We can see that insiders own shares in Zhejiang Jingsheng Mechanical & Electrical Co., Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CN¥3.4b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Zhejiang Jingsheng Mechanical & Electrical. 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. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. For instance, we've identified 3 warning signs for Zhejiang Jingsheng Mechanical & Electrical (1 is potentially serious) that you should be aware of.

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.