Stock Analysis

Individual investors are Anhui Tatfook Technology Co., Ltd's (SZSE:300134) biggest owners and were rewarded after market cap rose by CN¥2.7b last week

SZSE:300134
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Key Insights

  • Significant control over Anhui Tatfook Technology by individual investors implies that the general public has more power to influence management and governance-related decisions
  • A total of 25 investors have a majority stake in the company with 48% ownership
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Anhui Tatfook Technology Co., Ltd (SZSE:300134), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors were the biggest beneficiaries of last week’s 41% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Tatfook Technology.

Check out our latest analysis for Anhui Tatfook Technology

ownership-breakdown
SZSE:300134 Ownership Breakdown September 30th 2024

What Does The Institutional Ownership Tell Us About Anhui Tatfook Technology?

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.

Anhui Tatfook Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Anhui Tatfook Technology's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SZSE:300134 Earnings and Revenue Growth September 30th 2024

Hedge funds don't have many shares in Anhui Tatfook Technology. China Cinda Asset Management Co., Ltd. is currently the company's largest shareholder with 25% of shares outstanding. Shangchuan Sun is the second largest shareholder owning 9.7% of common stock, and Zhejiang Rongzhen Asset Management Co., Ltd. holds about 3.2% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 Anhui Tatfook Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Anhui Tatfook Technology Co., Ltd. This is a big company, so it is good to see this level of alignment. Insiders own CN¥899m worth of shares (at current prices). 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 52% of Anhui Tatfook Technology. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 5.2%, of the Anhui Tatfook Technology 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.

Public Company Ownership

We can see that public companies hold 25% of the Anhui Tatfook Technology shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 Anhui Tatfook Technology that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.