Key Insights

• The considerable ownership by retail investors in Qingdao Zhongzi Zhongcheng GroupLtd indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 52% of the company
• Insiders own 26% of Qingdao Zhongzi Zhongcheng GroupLtd

A look at the shareholders of Qingdao Zhongzi Zhongcheng Group Co.,Ltd. (SZSE:300208) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 38% ownership. 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 collectively scored the highest last week as the company hit CN¥6.5b market cap following a 7.0% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Qingdao Zhongzi Zhongcheng GroupLtd.

Check out our latest analysis for Qingdao Zhongzi Zhongcheng GroupLtd

What Does The Institutional Ownership Tell Us About Qingdao Zhongzi Zhongcheng GroupLtd?

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.

Institutions have a very small stake in Qingdao Zhongzi Zhongcheng GroupLtd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Qingdao Zhongzi Zhongcheng GroupLtd. Qingdao City Construction Investment (Group) Limited is currently the company's largest shareholder with 22% of shares outstanding. Yi Ming Dai is the second largest shareholder owning 10% of common stock, and Xiao Yu Jia holds about 10% of the company stock. Xiao Yu Jia, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Qingdao Zhongzi Zhongcheng GroupLtd

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.

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.

Our information suggests that insiders maintain a significant holding in Qingdao Zhongzi Zhongcheng Group Co.,Ltd.. Insiders have a CN¥1.7b stake in this CN¥6.5b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. 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 35%, of the Qingdao Zhongzi Zhongcheng GroupLtd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Qingdao Zhongzi Zhongcheng GroupLtd better, we need to consider many other factors. Take risks for example - Qingdao Zhongzi Zhongcheng GroupLtd has 2 warning signs we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.