Key Insights

• The considerable ownership by individual investors in Nanjing Kangni Mechanical & ElectricalLtd indicates that they collectively have a greater say in management and business strategy
• 40% of the business is held by the top 25 shareholders
• Insider ownership in Nanjing Kangni Mechanical & ElectricalLtd is 16%

If you want to know who really controls Nanjing Kangni Mechanical & Electrical Co.,Ltd (SHSE:603111), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 8.1% increase in the stock price last week, individual investors profited the most, but insiders who own 16% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Nanjing Kangni Mechanical & ElectricalLtd.

See our latest analysis for Nanjing Kangni Mechanical & ElectricalLtd

What Does The Institutional Ownership Tell Us About Nanjing Kangni Mechanical & ElectricalLtd?

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 Nanjing Kangni Mechanical & ElectricalLtd. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Nanjing Kangni Mechanical & ElectricalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nanjing Kangni Mechanical & ElectricalLtd. Our data shows that Nanjing Institute Of Technology Asset Operating Co., Ltd. is the largest shareholder with 8.6% of shares outstanding. With 4.4% and 4.1% of the shares outstanding respectively, Nanjing Fengling Equity Investment Fund Management Co., Ltd. and Yuan Gui Jin are the second and third largest shareholders. Yuan Gui Jin, who is the third-largest shareholder, also happens to hold the title of Chairman Emeritus. Furthermore, CEO Wen Ming Gao is the owner of 1.8% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Nanjing Kangni Mechanical & ElectricalLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our most recent data indicates that insiders own a reasonable proportion of Nanjing Kangni Mechanical & Electrical Co.,Ltd. Insiders have a CN¥914m stake in this CN¥5.8b 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, who are usually individual investors, hold a substantial 60% stake in Nanjing Kangni Mechanical & ElectricalLtd, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 11%, of the Nanjing Kangni Mechanical & ElectricalLtd stock. 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:

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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