Jinneng Holding Shanxi Electric Power Co.,LTD.'s (SZSE:000767) biggest owners are private companies who got richer after stock soared 9.9% last week

Key Insights

• The considerable ownership by private companies in Jinneng Holding Shanxi Electric PowerLTD indicates that they collectively have a greater say in management and business strategy
• 54% of the business is held by the top 4 shareholders
• 14% of Jinneng Holding Shanxi Electric PowerLTD is held by Institutions

A look at the shareholders of Jinneng Holding Shanxi Electric Power Co.,LTD. (SZSE:000767) 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 private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥800m last week.

Let's delve deeper into each type of owner of Jinneng Holding Shanxi Electric PowerLTD, beginning with the chart below.

Check out our latest analysis for Jinneng Holding Shanxi Electric PowerLTD

What Does The Institutional Ownership Tell Us About Jinneng Holding Shanxi Electric PowerLTD?

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.

Jinneng Holding Shanxi Electric PowerLTD already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Jinneng Holding Shanxi Electric PowerLTD's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jinneng Holding Shanxi Electric PowerLTD. Looking at our data, we can see that the largest shareholder is Shanxi State-owned Capital Operation Co., Ltd. with 29% of shares outstanding. Industrial Bank Co., Ltd. is the second largest shareholder owning 9.7% of common stock, and China Intelligent Capital (Beijing) Asset Management Co., Ltd. holds about 9.0% of the company stock.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Jinneng Holding Shanxi Electric PowerLTD

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our data suggests that insiders own under 1% of Jinneng Holding Shanxi Electric Power Co.,LTD. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CN¥225k worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 35% 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

It seems that Private Companies own 41%, of the Jinneng Holding Shanxi Electric PowerLTD 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.

Public Company Ownership

It appears to us that public companies own 9.7% of Jinneng Holding Shanxi Electric PowerLTD. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Jinneng Holding Shanxi Electric PowerLTD is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.