Retail investors among Shanghai Fudan Microelectronics Group Company Limited's (HKG:1385) largest shareholders, saw gain in holdings value after stock jumped 16% last week

Key Insights

• Significant control over Shanghai Fudan Microelectronics Group by retail 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 19 shareholders
• Institutions own 21% of Shanghai Fudan Microelectronics Group

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To get a sense of who is truly in control of Shanghai Fudan Microelectronics Group Company Limited (HKG:1385), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. 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, retail investors collectively scored the highest last week as the company hit HK$53b market cap following a 16% gain in the stock.

Let's delve deeper into each type of owner of Shanghai Fudan Microelectronics Group, beginning with the chart below.

Check out our latest analysis for Shanghai Fudan Microelectronics Group

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Shanghai Fudan Microelectronics Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Shanghai Fudan Microelectronics Group's earnings history below. Of course, the future is what really matters.

Shanghai Fudan Microelectronics Group is not owned by hedge funds. Shanghai Fudan High Tech Company is currently the company's largest shareholder with 13% of shares outstanding. With 12% and 4.6% of the shares outstanding respectively, Shanghai Fudan Science Technology Industry Holding Co., Ltd. and Shanghai Yikun Investment Management Consulting Partnership Enterprise (Limited Partnership) are the second and third largest shareholders. Furthermore, CEO Lei Shi is the owner of 0.9% of the company's shares.

After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Shanghai Fudan Microelectronics Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around HK$981m 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 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

Our data indicates that Private Companies hold 31%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Fudan Microelectronics Group better, we need to consider many other factors. For example, we've discovered 2 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.