Key Insights
Insiders appear to have a vested interest in the growth of Shanghai Weihong Electronics Technology, as can be seen from their large ownership. A combined total of 2 investors hold the majority stake in the company with an ownership of 55%. The company’s past performance and ownership data helps to give a strong idea about the prospects of the business.
To understand who really controls Shanghai Weihong Electronics Technology Co., Ltd. ( SZSE:300508 ), it is important to understand the company’s ownership structure. With a 60% stake, individual insiders have the largest stake in the company, which means that if the share price rises, the group stands to gain the most (and lose the most if the share price falls).
And with the share price falling 11% last week, it was insiders who suffered the biggest losses.
Let’s take a closer look to see what the different types of shareholders can tell us about Shanghai Weihong Electronics Technology.
Check out our latest analysis for Shanghai Weihong Electronics Technology
SZSE:300508 Ownership Breakdown July 4, 2024
What do institutional ownership tell us about Shanghai Weihong Electronic Technology?
Institutions typically compare their own performance against a benchmark when reporting to their own investors, so when a stock is included in a major index, they often increase their interest in that stock. You can expect most companies to have some institutional investors on the register, especially if they are growing.
Institutional investors hold only a small percentage of Shanghai Weihong Electronics Technology’s shares. This indicates that the company is attracting interest from some funds, but it is not particularly popular among professional investors at the moment. If the company’s business strengthens in the future, we may see more institutional investors willing to buy. If several large institutional investors want to buy a particular stock at the same time, the stock price may rise. The earnings and revenue history shown below may help you consider whether more institutional investors will want the stock. Of course, there are many other factors to consider.
SZSE:300508 Revenue and Sales Growth July 4, 2024
Hedge funds don’t hold much stock in Shanghai Weihong Electronics Technology. The company’s largest shareholder is Dong Kuitang, who owns 32%. By comparison, the second and third largest shareholders own about 23% and 3.7% of the stock, respectively. The second largest shareholder, Zheng Zhikai, also happens to hold the title of CEO.
What makes our research even more interesting is that we discovered that the top two shareholders hold majority ownership in the company, giving them enough power to influence the company’s decisions.
While studying institutional ownership for a company can add value to your research, it is also a good idea to research analyst recommendations to get a deeper understand of a stock’s expected performance. As far as we can tell, there is no analyst coverage of the company, so it’s probably not under the radar.
Insider Ownership of Shanghai Weihong Electronics Technology
While the precise definition of an insider can be subjective, almost everyone considers directors to be insiders. Management are ultimately responsible to the board of directors, however it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.
Insider ownership can be a positive if it signals management 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, which can be a negative in some circumstances.
It appears that insiders own more than half of Shanghai Weihong Electronics Technology Co., Ltd.’s shares. This gives them a lot of power. With a market capitalization of RMB2b, that means insiders own RMB1.2b worth of shares. Most would argue that this is a good thing, indicating strong alignment with shareholders. To see if insiders have been buying or selling, click here.
General public property
Thirty-five percent of Shanghai Weihong Electronics Technology’s shares are held by the general public, usually individual investors. While this ownership is significant, it may not be enough to change the company’s direction if it is not aligned with the decisions of other large shareholders.
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 example, we’ve identified 2 warning signs for Shanghai Weihong Electronic Technology that you should be aware of.
If you would prefer to check out other companies — some of which may have superior financials — then do not miss this free list of interesting companies, backed by strong financial data.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
Valuation is complicated, but we can help make it simple.
Find out whether Shanghai Weihong Electronics Technology is potentially overvalued or undervalued by checking our comprehensive analysis, including fair value estimates, risks and warnings, dividends, insider transactions, financial position and more.
View your free analysis
Have feedback about this article? Concerns about the content? Please contact us directly or email us at editorial-team (at) simplywallst.com.
This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
Valuation is complicated, but we can help make it simple.
Find out whether Shanghai Weihong Electronics Technology is potentially overvalued or undervalued by checking our comprehensive analysis, including fair value estimates, risks and warnings, dividends, insider transactions, financial position and more.
View your free analysis
Have something to say about this article? If you have any questions about the content, please contact us directly or email us at editorial-team@simplywallst.com.
