Jiangsu Allfavor Intelligent Circuits Technology CO.,Ltd (SZSE:300964) adds CN¥317m in market cap and insiders have a 43% stake in that gain

Key Insights

• Jiangsu Allfavor Intelligent Circuits TechnologyLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 3 shareholders own 52% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Jiangsu Allfavor Intelligent Circuits Technology CO.,Ltd (SZSE:300964), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 12% gain.

In the chart below, we zoom in on the different ownership groups of Jiangsu Allfavor Intelligent Circuits TechnologyLtd.

View our latest analysis for Jiangsu Allfavor Intelligent Circuits TechnologyLtd

What Does The Institutional Ownership Tell Us About Jiangsu Allfavor Intelligent Circuits TechnologyLtd?

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.

Less than 5% of Jiangsu Allfavor Intelligent Circuits TechnologyLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. 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.

We note that hedge funds don't have a meaningful investment in Jiangsu Allfavor Intelligent Circuits TechnologyLtd. Xiaojun Dong is currently the largest shareholder, with 25% of shares outstanding. With 20% and 7.1% of the shares outstanding respectively, Nanjing Ruihan Equity Investment Partnership Enterprise (Limited Partnership) and Guoxiong Zhou are the second and third largest shareholders. Guoxiong Zhou, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. Furthermore, CEO Peilai Jiang is the owner of 6.9% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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 Jiangsu Allfavor Intelligent Circuits TechnologyLtd

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.

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 Jiangsu Allfavor Intelligent Circuits Technology CO.,Ltd. Insiders have a CN¥1.2b stake in this CN¥2.8b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 34% 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

We can see that Private Companies own 20%, of the shares on issue. 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 Jiangsu Allfavor Intelligent Circuits TechnologyLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Jiangsu Allfavor Intelligent Circuits TechnologyLtd (of which 2 are concerning!) you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com