Key Insights

• The considerable ownership by private companies in Chengdu M&S Electronics TechnologyLtd indicates that they collectively have a greater say in management and business strategy
• The top 7 shareholders own 52% of the company
• Institutions own 33% of Chengdu M&S Electronics TechnologyLtd

Every investor in Chengdu M&S Electronics Technology Co.,Ltd. (SHSE:688311) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of private companies took a hit after last week's 9.8% price drop, institutions with their 33% holdings also suffered.

Let's delve deeper into each type of owner of Chengdu M&S Electronics TechnologyLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Chengdu M&S Electronics TechnologyLtd?

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 Chengdu M&S Electronics TechnologyLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Chengdu M&S Electronics TechnologyLtd's earnings history below. Of course, the future is what really matters.

Chengdu M&S Electronics TechnologyLtd is not owned by hedge funds. Our data shows that Chengdu Rongtou Innovation Investment Co., Ltd. is the largest shareholder with 29% of shares outstanding. With 7.4% and 3.8% of the shares outstanding respectively, Ningbo M&S Zhihe Enterprise Management Partnership Enterprise (Limited Partnership) and E Fund Management Co., Ltd. are the second and third largest shareholders. In addition, we found that Rong Liu, the CEO has 0.8% of the shares allocated to their name.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Chengdu M&S Electronics TechnologyLtd

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.

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 some shares in Chengdu M&S Electronics Technology Co.,Ltd.. As individuals, the insiders collectively own CN¥139m worth of the CN¥3.8b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chengdu M&S Electronics TechnologyLtd. 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

We can see that Private Companies own 42%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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 - Chengdu M&S Electronics TechnologyLtd has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.