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Asia-potash International Investment (Guangzhou)Co.,Ltd.'s (SZSE:000893) Last Week's 3.5% Decline Must Have Disappointed Retail Investors Who Have a Significant Stake

アジアポタッシュインターナショナルインベストメント(広州)株式会社(SZSE:000893)の先週の3.5%の減少は、重要な株主である小売投資家たちを失望させたことでしょう。

Simply Wall St ·  06/12 18:24

Key Insights

  • The considerable ownership by retail investors in Asia-potash International Investment (Guangzhou)Co.Ltd indicates that they collectively have a greater say in management and business strategy
  • The top 10 shareholders own 50% of the company
  • Institutions own 16% of Asia-potash International Investment (Guangzhou)Co.Ltd

To get a sense of who is truly in control of Asia-potash International Investment (Guangzhou)Co.,Ltd. (SZSE:000893), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 40% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, retail investors endured the biggest losses as the stock fell by 3.5%.

Let's delve deeper into each type of owner of Asia-potash International Investment (Guangzhou)Co.Ltd, beginning with the chart below.

ownership-breakdown
SZSE:000893 Ownership Breakdown June 12th 2024

What Does The Institutional Ownership Tell Us About Asia-potash International Investment (Guangzhou)Co.Ltd?

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.

Asia-potash International Investment (Guangzhou)Co.Ltd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Asia-potash International Investment (Guangzhou)Co.Ltd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SZSE:000893 Earnings and Revenue Growth June 12th 2024

Hedge funds don't have many shares in Asia-potash International Investment (Guangzhou)Co.Ltd. The company's largest shareholder is All China Federation of Supply and Marketing Cooperatives, with ownership of 16%. Meanwhile, the second and third largest shareholders, hold 9.1% and 8.5%, of the shares outstanding, respectively.

We did some more digging and found that 10 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. 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 Asia-potash International Investment (Guangzhou)Co.Ltd

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.

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.

Our information suggests that Asia-potash International Investment (Guangzhou)Co.,Ltd. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. Keep in mind that it's a big company, and the insiders own CN¥148m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Asia-potash International Investment (Guangzhou)Co.Ltd. 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

With a stake of 15%, private equity firms could influence the Asia-potash International Investment (Guangzhou)Co.Ltd board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

Our data indicates that Private Companies hold 27%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Asia-potash International Investment (Guangzhou)Co.Ltd (including 1 which is a bit concerning) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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.

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