Key Insights

• The considerable ownership by retail investors in Guangzhou Wondfo BiotechLtd indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 10 shareholders
• Insider ownership in Guangzhou Wondfo BiotechLtd is 31%

If you want to know who really controls Guangzhou Wondfo Biotech Co.,Ltd (SZSE:300482), then you'll have to look at the makeup of its share registry. With 41% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 5.1% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 31% stock also took a hit.

Let's delve deeper into each type of owner of Guangzhou Wondfo BiotechLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Guangzhou Wondfo BiotechLtd?

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.

As you can see, institutional investors have a fair amount of stake in Guangzhou Wondfo BiotechLtd. 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. 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 Guangzhou Wondfo BiotechLtd, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Guangzhou Wondfo BiotechLtd. Our data shows that Wen Mei Li is the largest shareholder with 20% of shares outstanding. The second and third largest shareholders are Ji Hua Wang and Guangzhou Huiyin Tianyue Equity Investment Fund Management Co., Ltd., with an equal amount of shares to their name at 10%.

On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Guangzhou Wondfo BiotechLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Guangzhou Wondfo Biotech Co.,Ltd. It has a market capitalization of just CN¥12b, and insiders have CN¥3.7b worth of shares in their own names. That's quite significant. 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

With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Guangzhou Wondfo BiotechLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 10% stake in Guangzhou Wondfo BiotechLtd. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Guangzhou Wondfo BiotechLtd has 2 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.