Shanghai Fudan Microelectronics Group Company Limited's (HKG:1385) largest shareholders are retail investors who were rewarded as market cap surged HK$1.1b 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
• A total of 16 investors have a majority stake in the company with 51% ownership
• Institutional ownership in Shanghai Fudan Microelectronics Group is 23%

If you want to know who really controls Shanghai Fudan Microelectronics Group Company Limited (HKG:1385), then you'll have to look at the makeup of its share registry. With 42% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors were the biggest beneficiaries of last week’s 10% gain.

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

See 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.

We can see that Shanghai Fudan Microelectronics Group does have institutional investors; and they hold a good portion of the company's stock. 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 Shanghai Fudan Microelectronics Group's historic earnings and revenue below, but keep in mind there's always more to the story.

Shanghai Fudan Microelectronics Group is not owned by hedge funds. 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. Meanwhile, the second and third largest shareholders, hold 13% and 4.8%, of the shares outstanding, respectively. Additionally, the company's CEO Lei Shi directly holds 0.9% of the total shares outstanding.

After doing some more digging, we found that the top 16 have the combined ownership of 51% 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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. 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.

We can report that insiders do 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$460m worth of shares (at current prices). It is good to see this level of investment by insiders. 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 42% 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

It seems that Private Companies own 33%, of the Shanghai Fudan Microelectronics Group stock. 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:

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. Take risks for example - Shanghai Fudan Microelectronics Group has 2 warning signs we think you should be aware of.

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.