Key Insights

• Significant control over Hunan Yuneng New Energy Battery MaterialLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 8 shareholders
• 18% of Hunan Yuneng New Energy Battery MaterialLtd is held by Institutions

A look at the shareholders of Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit CN¥24b market cap following a 20% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Hunan Yuneng New Energy Battery MaterialLtd.

What Does The Institutional Ownership Tell Us About Hunan Yuneng New Energy Battery MaterialLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Hunan Yuneng New Energy Battery MaterialLtd 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 Hunan Yuneng New Energy Battery MaterialLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Hunan Yuneng New Energy Battery MaterialLtd. Xiangtan Electric Manufacturing Group Co., Ltd. is currently the largest shareholder, with 10% of shares outstanding. The second and third largest shareholders are Shanghai Jinsheng New Material Technology Co., Ltd. and Contemporary Amperex Technology Co., Limited, with an equal amount of shares to their name at 7.9%.

We did some more digging and found that 8 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hunan Yuneng New Energy Battery MaterialLtd

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.

Shareholders would probably be interested to learn that insiders own shares in Hunan Yuneng New Energy Battery Material Co.,Ltd.. The insiders have a meaningful stake worth CN¥646m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 36%, of the Hunan Yuneng New Energy Battery MaterialLtd stock. 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.

Public Company Ownership

It appears to us that public companies own 18% of Hunan Yuneng New Energy Battery MaterialLtd. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. For example, we've discovered 2 warning signs for Hunan Yuneng New Energy Battery MaterialLtd that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.