Key Insights

• The considerable ownership by individual investors in Nanjing Kangni Mechanical & ElectricalLtd indicates that they collectively have a greater say in management and business strategy
• 44% of the business is held by the top 25 shareholders
• Insiders own 18% of Nanjing Kangni Mechanical & ElectricalLtd

If you want to know who really controls Nanjing Kangni Mechanical & Electrical Co.,Ltd (SHSE:603111), then you'll have to look at the makeup of its share registry. With 56% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week's CN¥405m market cap gain, insiders too had a 18% share in those profits.

In the chart below, we zoom in on the different ownership groups of Nanjing Kangni Mechanical & ElectricalLtd.

What Does The Institutional Ownership Tell Us About Nanjing Kangni Mechanical & ElectricalLtd?

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.

As you can see, institutional investors have a fair amount of stake in Nanjing Kangni Mechanical & ElectricalLtd. 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 Nanjing Kangni Mechanical & ElectricalLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Nanjing Kangni Mechanical & ElectricalLtd. Nanjing Institute Of Technology Asset Operating Co., Ltd. is currently the largest shareholder, with 9.3% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.7% and 4.5% of the stock. Yuan Gui Jin, who is the third-largest shareholder, also happens to hold the title of Chairman Emeritus. Furthermore, CEO Wen Ming Gao is the owner of 2.0% of the company's shares.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Nanjing Kangni Mechanical & ElectricalLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Nanjing Kangni Mechanical & Electrical Co.,Ltd. Insiders have a CN¥1.0b stake in this CN¥5.8b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 56% stake in Nanjing Kangni Mechanical & ElectricalLtd, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

It seems that Private Companies own 11%, of the Nanjing Kangni Mechanical & ElectricalLtd 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:

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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.