Key Insights

• Significant insider control over Jiangsu Allfavor Intelligent Circuits TechnologyLtd implies vested interests in company growth
• The top 3 shareholders own 52% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Jiangsu Allfavor Intelligent Circuits Technology CO.,Ltd (SZSE:300964) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥372m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Jiangsu Allfavor Intelligent Circuits TechnologyLtd.

What Does The Institutional Ownership Tell Us About Jiangsu Allfavor Intelligent Circuits TechnologyLtd?

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.

Since institutions own only a small portion of Jiangsu Allfavor Intelligent Circuits TechnologyLtd, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Jiangsu Allfavor Intelligent Circuits TechnologyLtd is not owned by hedge funds. Our data shows that Xiaojun Dong is the largest shareholder with 25% of shares outstanding. With 20% and 7.1% of the shares outstanding respectively, Nanjing Ruihan Equity Investment Partnership Enterprise (Limited Partnership) and Guoxiong Zhou are the second and third largest shareholders. Guoxiong Zhou, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Peilai Jiang, the CEO has 6.9% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Jiangsu Allfavor Intelligent Circuits TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

It seems insiders own a significant proportion of Jiangsu Allfavor Intelligent Circuits Technology CO.,Ltd. Insiders have a CN¥1.2b stake in this CN¥2.8b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Jiangsu Allfavor Intelligent Circuits TechnologyLtd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 20%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangsu Allfavor Intelligent Circuits TechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Jiangsu Allfavor Intelligent Circuits TechnologyLtd you should be aware of, and 2 of them are significant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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