Key Insights

• Changzhou Xingyu Automotive Lighting SystemsLtd's significant insider ownership suggests inherent interests in company's expansion
• 54% of the business is held by the top 3 shareholders
• Institutional ownership in Changzhou Xingyu Automotive Lighting SystemsLtd is 19%

To get a sense of who is truly in control of Changzhou Xingyu Automotive Lighting Systems Co.,Ltd. (SHSE:601799), it is important to understand the ownership structure of the business. With 48% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So, insiders of Changzhou Xingyu Automotive Lighting SystemsLtd have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.

Let's delve deeper into each type of owner of Changzhou Xingyu Automotive Lighting SystemsLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Changzhou Xingyu Automotive Lighting SystemsLtd?

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.

Changzhou Xingyu Automotive Lighting SystemsLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Changzhou Xingyu Automotive Lighting SystemsLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Changzhou Xingyu Automotive Lighting SystemsLtd. With a 36% stake, CEO Xiaoping Zhou is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 12% and 6.2%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Changzhou Xingyu Automotive Lighting SystemsLtd

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.

It seems insiders own a significant proportion of Changzhou Xingyu Automotive Lighting Systems Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥20b stake in this CN¥42b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Changzhou Xingyu Automotive Lighting SystemsLtd. 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

We can see that Private Companies own 6.2%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Changzhou Xingyu Automotive Lighting SystemsLtd better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.

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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.