Private companies invested in Jiayou International Logistics Co.,Ltd (SHSE:603871) copped the brunt of last week's CN¥575m market cap decline

Key Insights

• Significant control over Jiayou International LogisticsLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 56% of the company
• Insider ownership in Jiayou International LogisticsLtd is 23%

If you want to know who really controls Jiayou International Logistics Co.,Ltd (SHSE:603871), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 25% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders who own 23% came under pressure after market cap dropped to CN¥17b last week,private companies took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Jiayou International LogisticsLtd.

View our latest analysis for Jiayou International LogisticsLtd

What Does The Institutional Ownership Tell Us About Jiayou International LogisticsLtd?

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.

Jiayou International LogisticsLtd 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. 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 Jiayou International LogisticsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Jiayou International LogisticsLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jiaxinyi (Tianjin) Asset Management Partnership Enterprise (Limited Partnership) with 25% of shares outstanding. Zijin Mining Group Company Limited is the second largest shareholder owning 17% of common stock, and Jinghua Han holds about 13% of the company stock.

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 56% stake.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jiayou International LogisticsLtd

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Jiayou International Logistics Co.,Ltd. It has a market capitalization of just CN¥17b, and insiders have CN¥3.9b worth of shares in their own names. That's quite significant. It is good to see this level of investment. 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 19% stake in Jiayou International LogisticsLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 25%, of the Jiayou International LogisticsLtd 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.

Public Company Ownership

It appears to us that public companies own 17% of Jiayou International LogisticsLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Jiayou International LogisticsLtd you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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