Key Insights

• Significant control over Jiangsu Dingsheng New Materials Ltd by retail investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 3 shareholders
• Insider ownership in Jiangsu Dingsheng New Materials Ltd is 11%

A look at the shareholders of Jiangsu Dingsheng New Materials Joint-Stock Co.,Ltd (SHSE:603876) can tell us which group is most powerful. The group holding the most number of shares in the company, around 32% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors were the biggest beneficiaries of last week's 5.0% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Dingsheng New Materials Ltd.

What Does The Institutional Ownership Tell Us About Jiangsu Dingsheng New Materials Ltd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Jiangsu Dingsheng New Materials Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Jiangsu Dingsheng New Materials Ltd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jiangsu Dingsheng New Materials Ltd. Hangzhou Dingsheng Industrial Group Co.,Ltd. is currently the largest shareholder, with 28% of shares outstanding. The second and third largest shareholders are Gongqingcheng Purun Investment Management Partnership Enterprise (Limited Partnership) and Xianhai Zhou, with an equal amount of shares to their name at 11%.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Jiangsu Dingsheng New Materials Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Jiangsu Dingsheng New Materials Joint-Stock Co.,Ltd. Insiders own CN¥914m worth of shares in the CN¥8.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 32% 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 Equity Ownership

Private equity firms hold a 11% stake in Jiangsu Dingsheng New Materials Ltd. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 29%, of the shares on issue. 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:

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. Take risks for example - Jiangsu Dingsheng New Materials Ltd has 2 warning signs we think you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com