Key Insights

• Significant control over Jiangsu Sinopep-Allsino Biopharmaceutical 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 13 shareholders
• 16% of Jiangsu Sinopep-Allsino Biopharmaceutical is held by insiders

To get a sense of who is truly in control of Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd. (SHSE:688076), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 35% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, retail investors endured the biggest losses as the stock fell by 6.9%.

In the chart below, we zoom in on the different ownership groups of Jiangsu Sinopep-Allsino Biopharmaceutical.

What Does The Institutional Ownership Tell Us About Jiangsu Sinopep-Allsino Biopharmaceutical?

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.

We can see that Jiangsu Sinopep-Allsino Biopharmaceutical does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sinopep-Allsino Biopharmaceutical's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Jiangsu Sinopep-Allsino Biopharmaceutical. The company's largest shareholder is Lianyungang Nuotai Investment Management Partnership Enterprise (L.P.), with ownership of 9.1%. The second and third largest shareholders are Deyi Zhao and Dezhong Zhao, with an equal amount of shares to their name at 6.1%. Dezhong Zhao, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 13 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Jiangsu Sinopep-Allsino Biopharmaceutical

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Jiangsu Sinopep-Allsino Biopharmaceutical Co., Ltd.. It has a market capitalization of just CN¥12b, and insiders have CN¥1.9b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangsu Sinopep-Allsino Biopharmaceutical. 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 28%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Sinopep-Allsino Biopharmaceutical better, we need to consider many other factors. Be aware that Jiangsu Sinopep-Allsino Biopharmaceutical is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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.