Key Insights
Shanghai Shengjian Environmental Technology’s significant insider ownership suggests an inherent interest in the company’s expansion. The company’s largest shareholder is Zhang Weiming, with a 72% stake. By combining the company’s past performance data with an ownership research, we can better assess the company’s future performance.
To understand who really controls Shanghai Shengjian Environmental Technology Co., Ltd. (SHSE:603324), it’s important to understand the company’s ownership structure. The largest group holding shares in the company (about 74% to be exact) are individual insiders. In other words, this group stands to gain (or lose) the most from investing in the company.
As a result, insiders were the biggest beneficiaries of last week’s 12% rise.
Let’s take a closer look to see what the different types of shareholders can tell us about Shanghai Shengjian Environmental Technology.
Read our latest analysis on Shanghai Shengjian Environmental Technology
SHSE:603324 Ownership Breakdown July 23, 2024
What do institutional ownership tell us about Shanghai Shengjian Environmental Technology?
Many institutions measure their performance against an index that approximates the local market, so they usually pay particular attention to companies that are included in major indexes.
We can see that Shanghai Shengjian Environmental Technology has institutional investors who hold a significant portion of the company’s shares. This means that the analysts working for these institutions have looked at the stock and they like it. But just like everyone else, the analysts could be wrong. It’s not uncommon to see a big share price drop when two large institutional investors try to sell a stock at the same time. It’s therefore worth checking the past earnings trajectory of Shanghai Shengjian Environmental Technology (below). Of course, remember that there are other factors to consider, too.
SHSE:603324 Earnings and Sales Growth July 23, 2024
Hedge funds do not hold many shares in Shanghai Shengjian Environmental Technology. CEO Zhang Weiming holds a 72% stake, making him the largest shareholder. This means they hold a majority of the shares and have significant control over the company. Investors usually view it as a good sign when a company’s management holds such a large stake, as it is widely perceived that management is more likely to act in the company’s best interests. In comparison, the second and third largest shareholders hold about 3.2% and 2.1% of the stock, respectively.
While studying institutional ownership for a company can add value to your research, it’s also a good idea to research analyst recommendations to get a deeper understand of a stock’s expected performance. While there is analyst coverage, the company is probably not as widely covered, so it may attract more attention in the future.
Insider Ownership of Shanghai Shengjian Environmental Technology
The definition of an insider varies slightly between countries, but members of the board of directors always count. Management are ultimately responsible to the board of directors, however, it is not uncommon for management to also be members of the executive board, particularly 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.
Our most recent data shows that insiders own more than half of Shanghai Shengjian Environmental Technology Co., Ltd.’s shares, which means they can jointly make decisions for the company. Given that the market capitalization is RMB3.4b, that means they own RMB2.5b worth of shares. Most would argue that this is a good thing, indicating strong alignment with shareholders. You can click here to see if these insiders have been buying or selling.
General public property
The general public (including retail investors) own 12% of the company’s shares, so it’s not something that can be easily ignored, and while this group doesn’t necessarily have the decision-making power, it can certainly have a real influence on how the company is run.
Private Ownership
It appears that private companies own 3.6% of Shanghai Shengjian Environmental Technology Co., Ltd. shares. Private companies may be related parties – insiders may have an interest in public companies through holdings in private companies, rather than in their own capacity as individuals. It’s difficult to draw any broad strokes conclusions, but it’s worth noting as an area for further investigation.
Next steps:
It’s very interesting to look at who exactly owns a company, but to gain real insight, you need to consider other information as well: Taking risks as an example, Shanghai Shengjian Environmental Technology has 2 warning signs (and 1 which is a bit unpleasant) you should be aware of.
If you would like to find out what analysts are predicting about future growth then do not miss this free report on analyst forecasts.
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 Shengjian Environmental 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 Shengjian Environmental 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.
