Key Insights
- Jiayou International LogisticsLtd's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 3 shareholders own 56% of the company
- 23% of Jiayou International LogisticsLtd is held by insiders
A look at the shareholders of Jiayou International Logistics Co.,Ltd (SHSE:603871) can tell us which group is most powerful. The group holding the most number of shares in the company, around 25% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
And individual insiders on the other hand have a 23% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of Jiayou International LogisticsLtd, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Jiayou International LogisticsLtd?
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 Jiayou International LogisticsLtd. 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 Jiayou International LogisticsLtd's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Jiayou International LogisticsLtd. The company's largest shareholder is Jiaxinyi (Tianjin) Asset Management Partnership Enterprise (Limited Partnership), with ownership of 25%. Meanwhile, the second and third largest shareholders, hold 17% and 13%, of the shares outstanding, respectively.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Jiayou International LogisticsLtd
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.
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.
It seems insiders own a significant proportion of Jiayou International Logistics Co.,Ltd. It is very interesting to see that insiders have a meaningful CN¥4.5b stake in this CN¥20b business. 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 22% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 25%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
Public companies currently own 17% of Jiayou International LogisticsLtd stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Jiayou International LogisticsLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Jiayou International LogisticsLtd that 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.
