Key Insights

• The considerable ownership by individual investors in Henan Shenhuo Coal Industary and Electricity Power indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 15 shareholders
• 22% of Henan Shenhuo Coal Industary and Electricity Power is held by Institutions

If you want to know who really controls Henan Shenhuo Coal Industary and Electricity Power Corporation Limited (SZSE:000933), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private companies make up 34% of the company's shareholders.

In the chart below, we zoom in on the different ownership groups of Henan Shenhuo Coal Industary and Electricity Power.

What Does The Institutional Ownership Tell Us About Henan Shenhuo Coal Industary and Electricity Power?

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 Henan Shenhuo Coal Industary and Electricity Power. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Henan Shenhuo Coal Industary and Electricity Power, (below). Of course, keep in mind that there are other factors to consider, too.

Henan Shenhuo Coal Industary and Electricity Power is not owned by hedge funds. Our data shows that Henan Shenhuo Group Co., Ltd. is the largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 8.5% of the shares outstanding, followed by an ownership of 3.6% by the third-largest shareholder.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Henan Shenhuo Coal Industary and Electricity Power

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 less than 1% of Henan Shenhuo Coal Industary and Electricity Power Corporation Limited. 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¥65m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 44% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 34%, of the company's shares. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Henan Shenhuo Coal Industary and Electricity Power better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Henan Shenhuo Coal Industary and Electricity Power .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.