Individual investors invested in Advanced Fiber Resources (Zhuhai), Ltd. (SZSE:300620) up 3.4% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in Advanced Fiber Resources (Zhuhai) indicates that they collectively have a greater say in management and business strategy
• A total of 4 investors have a majority stake in the company with 55% ownership
• 32% of Advanced Fiber Resources (Zhuhai) is held by insiders

A look at the shareholders of Advanced Fiber Resources (Zhuhai), Ltd. (SZSE:300620) can tell us which group is most powerful. The group holding the most number of shares in the company, around 41% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched CN¥13b last week, while insiders who own 32% also benefitted.

Let's delve deeper into each type of owner of Advanced Fiber Resources (Zhuhai), beginning with the chart below.

See our latest analysis for Advanced Fiber Resources (Zhuhai)

What Does The Institutional Ownership Tell Us About Advanced Fiber Resources (Zhuhai)?

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.

Since institutions own only a small portion of Advanced Fiber Resources (Zhuhai), many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Advanced Fiber Resources (Zhuhai). Zhuhai Huafa Technology Industry Group Co., Ltd. is currently the company's largest shareholder with 23% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 10%, of the shares outstanding, respectively. Furthermore, CEO Xinglong Wang is the owner of 4.9% of the company's shares.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. 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 Advanced Fiber Resources (Zhuhai)

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 most recent data indicates that insiders own a reasonable proportion of Advanced Fiber Resources (Zhuhai), Ltd.. It has a market capitalization of just CN¥13b, and insiders have CN¥4.1b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% 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 Equity Ownership

With a stake of 23%, private equity firms could influence the Advanced Fiber Resources (Zhuhai) board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Advanced Fiber Resources (Zhuhai) .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.