Retail investors are ZhuZhou QianJin Pharmaceutical Co.,Ltd's (SHSE:600479) biggest owners and were rewarded after market cap rose by CN¥517m last week

Key Insights

• ZhuZhou QianJin PharmaceuticalLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 18 shareholders
• 20% of ZhuZhou QianJin PharmaceuticalLtd is held by Institutions

If you want to know who really controls ZhuZhou QianJin Pharmaceutical Co.,Ltd (SHSE:600479), then you'll have to look at the makeup of its share registry. With 48% 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.

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥517m last week.

In the chart below, we zoom in on the different ownership groups of ZhuZhou QianJin PharmaceuticalLtd.

See our latest analysis for ZhuZhou QianJin PharmaceuticalLtd

What Does The Institutional Ownership Tell Us About ZhuZhou QianJin PharmaceuticalLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that ZhuZhou QianJin PharmaceuticalLtd 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. 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 ZhuZhou QianJin PharmaceuticalLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in ZhuZhou QianJin PharmaceuticalLtd. Zhuzhou State-owned Assets Investment Holding Group Co., Ltd is currently the company's largest shareholder with 28% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.3% and 2.3% of the stock.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of ZhuZhou QianJin PharmaceuticalLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in ZhuZhou QianJin Pharmaceutical Co.,Ltd. In their own names, insiders own CN¥115m worth of stock in the CN¥4.5b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in ZhuZhou QianJin PharmaceuticalLtd. 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 30%, of the shares on issue. 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.

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 instance, we've identified 1 warning sign for ZhuZhou QianJin PharmaceuticalLtd that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.