Key Insights

• Significant control over LiJiang YuLong Tourism by retail investors implies that the general public has more power to influence management and governance-related decisions
• 55% of the business is held by the top 6 shareholders
• Institutional ownership in LiJiang YuLong Tourism is 14%

A look at the shareholders of LiJiang YuLong Tourism Co., LTD. (SZSE:002033) can tell us which group is most powerful. The group holding the most number of shares in the company, around 35% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors as a group endured the highest losses last week after market cap fell by CN¥489m.

In the chart below, we zoom in on the different ownership groups of LiJiang YuLong Tourism.

Check out our latest analysis for LiJiang YuLong Tourism

What Does The Institutional Ownership Tell Us About LiJiang YuLong Tourism?

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.

LiJiang YuLong Tourism 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. 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 LiJiang YuLong Tourism's historic earnings and revenue below, but keep in mind there's always more to the story.

LiJiang YuLong Tourism is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Lijiang Yulong Snow Mountain Tourism Development Co., Ltd. with 16% of shares outstanding. Huapont Life Sciences Co.,Ltd is the second largest shareholder owning 14% of common stock, and Yunnan Provincial Investment Holdings Group Co.,Ltd. holds about 9.2% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of LiJiang YuLong Tourism

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

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.

We can report that insiders do own shares in LiJiang YuLong Tourism Co., LTD.. In their own names, insiders own CN¥257m worth of stock in the CN¥5.1b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in LiJiang YuLong Tourism. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 32%, of the LiJiang YuLong Tourism stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 14% of the LiJiang YuLong Tourism shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LiJiang YuLong Tourism better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with LiJiang YuLong Tourism , and understanding them should be part of your investment process.

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.

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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.