Private companies own 27% of Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) shares but retail investors control 59% of the company

Simply Wall St · 10/18 00:44

Key Insights

If you want to know who really controls Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049), 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 retail investors with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Private companies, on the other hand, account for 27% of the company's stockholders.

Let's delve deeper into each type of owner of Unigroup Guoxin Microelectronics, beginning with the chart below.

See our latest analysis for Unigroup Guoxin Microelectronics

ownership-breakdown
SZSE:002049 Ownership Breakdown October 18th 2024

What Does The Institutional Ownership Tell Us About Unigroup Guoxin Microelectronics?

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.

As you can see, institutional investors have a fair amount of stake in Unigroup Guoxin Microelectronics. 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 Unigroup Guoxin Microelectronics' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SZSE:002049 Earnings and Revenue Growth October 18th 2024

Unigroup Guoxin Microelectronics is not owned by hedge funds. Our data shows that Beijing Zhiguangxin Holding Co., Ltd is the largest shareholder with 26% of shares outstanding. China Asset Management Co. Ltd. is the second largest shareholder owning 1.7% of common stock, and CPIC Fund Management Co., Ltd. holds about 1.1% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Unigroup Guoxin Microelectronics

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our data suggests that insiders own under 1% of Unigroup Guoxin Microelectronics Co., Ltd. in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CN¥13m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 59% of Unigroup Guoxin Microelectronics. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

It seems that Private Companies own 27%, of the Unigroup Guoxin Microelectronics 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Unigroup Guoxin Microelectronics that you should be aware of.

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.