Recent uptick might appease Advanced Micro-Fabrication Equipment Inc. China (SHSE:688012) institutional owners after losing 8.9% over the past year

Simply Wall St · 4d ago

Key Insights

  • Given the large stake in the stock by institutions, Advanced Micro-Fabrication Equipment China's stock price might be vulnerable to their trading decisions
  • A total of 10 investors have a majority stake in the company with 51% ownership
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Advanced Micro-Fabrication Equipment Inc. China (SHSE:688012), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

After a year of 8.9% losses, last week’s 14% gain would be welcomed by institutional investors as a possible sign that returns might start trending higher.

Let's delve deeper into each type of owner of Advanced Micro-Fabrication Equipment China, beginning with the chart below.

View our latest analysis for Advanced Micro-Fabrication Equipment China

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SHSE:688012 Ownership Breakdown September 29th 2024

What Does The Institutional Ownership Tell Us About Advanced Micro-Fabrication Equipment China?

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.

Advanced Micro-Fabrication Equipment China 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. 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 Advanced Micro-Fabrication Equipment China, (below). Of course, keep in mind that there are other factors to consider, too.

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SHSE:688012 Earnings and Revenue Growth September 29th 2024

Hedge funds don't have many shares in Advanced Micro-Fabrication Equipment China. The company's largest shareholder is Shanghai Venture Capital Co., Ltd., with ownership of 15%. Xunxin (Shanghai) Investment Co., Ltd. is the second largest shareholder owning 13% of common stock, and China Asset Management Co. Ltd. holds about 7.4% of the company stock. Furthermore, CEO Gerald Zheyao Yin is the owner of 0.7% of the company's shares.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Advanced Micro-Fabrication Equipment China

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.

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.

We can see that insiders own shares in Advanced Micro-Fabrication Equipment Inc. China. The insiders have a meaningful stake worth CN¥1.6b. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

With an ownership of 15%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

Our data indicates that Private Companies hold 16%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Advanced Micro-Fabrication Equipment China (including 1 which is a bit concerning) .

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.