Key Insights

• The considerable ownership by individual investors in Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 56% of the company
• Insiders own 18% of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd

A look at the shareholders of Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co.,Ltd. (HKG:1349) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company 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).

Clearly, individual investors benefitted the most after the company's market cap rose by HK$570m last week.

Let's delve deeper into each type of owner of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd?

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.

Less than 5% of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd. Our data shows that Shanghai Pharmaceuticals Holding Co., Ltd is the largest shareholder with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 7.7%, of the shares outstanding, respectively. In addition, we found that Da Jun Zhao, the CEO has 1.5% of the shares allocated to their name.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd

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.

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 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co.,Ltd.. Insiders own HK$1.3b worth of shares in the HK$7.3b company. 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-- including retail investors -- own 36% 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 Equity Ownership

Private equity firms hold a 15% stake in Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Public Company Ownership

Public companies currently own 27% of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd (1 shouldn't be ignored!) that you should be aware of before investing here.

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.

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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.