A look at the shareholders of Zhejiang Wufangzhai Industry Co., Ltd. (SHSE:603237) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While private companies were the group that benefitted the most from last week’s CN¥343m market cap gain, institutions too had a 30% share in those profits.
Let's delve deeper into each type of owner of Zhejiang Wufangzhai Industry, beginning with the chart below.
View our latest analysis for Zhejiang Wufangzhai Industry
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.
Zhejiang Wufangzhai Industry 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 Zhejiang Wufangzhai Industry's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Zhejiang Wufangzhai Industry. The company's largest shareholder is Wufangzhai Group Co., Ltd., with ownership of 38%. Meanwhile, the second and third largest shareholders, hold 18% and 5.5%, of the shares outstanding, respectively.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. There is some analyst coverage of the stock, but it could still become more well known, with time.
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.
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 Zhejiang Wufangzhai Industry Co., Ltd.. It has a market capitalization of just CN¥3.2b, and insiders have CN¥37m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
The general public, who are usually individual investors, hold a 28% stake in Zhejiang Wufangzhai Industry. 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.
It seems that Private Companies own 39%, of the Zhejiang Wufangzhai Industry 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.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Zhejiang Wufangzhai Industry 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.