Individual investors are Shanghai Fudan Microelectronics Group Company Limited's (HKG:1385) biggest owners and were rewarded after market cap rose by HK$7.0b last week

Key Insights

• Significant control over Shanghai Fudan Microelectronics Group by individual investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 21 shareholders
• Institutions own 19% of Shanghai Fudan Microelectronics Group

A look at the shareholders of Shanghai Fudan Microelectronics Group Company Limited (HKG:1385) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors were the biggest beneficiaries of last week’s 71% gain.

In the chart below, we zoom in on the different ownership groups of Shanghai Fudan Microelectronics Group.

View our latest analysis for Shanghai Fudan Microelectronics Group

What Does The Institutional Ownership Tell Us About Shanghai Fudan Microelectronics Group?

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.

Shanghai Fudan Microelectronics Group 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shanghai Fudan Microelectronics Group, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shanghai Fudan Microelectronics Group. Looking at our data, we can see that the largest shareholder is Shanghai Fudan Science Technology Industry Holding Co., Ltd. with 13% of shares outstanding. With 13% and 5.2% of the shares outstanding respectively, Shanghai Fudan High Tech Company and Shanghai Yikun Investment Management Consulting Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Additionally, the company's CEO Lei Shi directly holds 0.9% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 21 shareholders have a combined ownership of 50% implying that 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Shanghai Fudan Microelectronics Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Shareholders would probably be interested to learn that insiders own shares in Shanghai Fudan Microelectronics Group Company Limited. This is a big company, so it is good to see this level of alignment. Insiders own HK$500m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Shanghai Fudan Microelectronics Group. 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 33%, of the shares on issue. 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.

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. For example, we've discovered 3 warning signs for Shanghai Fudan Microelectronics Group that you should be aware of before investing here.

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.