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Shenzhen SunXing Light Alloys Materials Co.,Ltd.'s (SHSE:603978) Market Cap Dropped CN¥346m Last Week; Individual Investors Bore the Brunt

Simply Wall St ·  08/25 07:30

If you want to know who really controls Shenzhen SunXing Light Alloys Materials Co.,Ltd. (SHSE:603978), then you'll have to look at the makeup of its share registry. With 40% stake, individual investors 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.

While insiders who own 30% came under pressure after market cap dropped to CN¥4.3b last week,individual investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Shenzhen SunXing Light Alloys MaterialsLtd.

Check out our latest analysis for Shenzhen SunXing Light Alloys MaterialsLtd

ownership-breakdownSHSE:603978 Ownership Breakdown August 24th 2022

What Does The Institutional Ownership Tell Us About Shenzhen SunXing Light Alloys MaterialsLtd?

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.

Less than 5% of Shenzhen SunXing Light Alloys MaterialsLtd 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.

earnings-and-revenue-growthSHSE:603978 Earnings and Revenue Growth August 24th 2022

Hedge funds don't have many shares in Shenzhen SunXing Light Alloys MaterialsLtd. Looking at our data, we can see that the largest shareholder is Xuemin Chen with 26% of shares outstanding. With 15% and 9.3% of the shares outstanding respectively, Shenzhen Yandai Investment Co., Ltd. and Shenzhen Huike Light Metal Research Development And Management Co., Ltd. are the second and third largest shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Shenzhen SunXing Light Alloys MaterialsLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our information suggests that insiders maintain a significant holding in Shenzhen SunXing Light Alloys Materials Co.,Ltd.. Insiders own CN¥1.3b worth of shares in the CN¥4.3b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 40% stake in Shenzhen SunXing Light Alloys MaterialsLtd. 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

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:

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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Shenzhen SunXing Light Alloys MaterialsLtd (of which 1 is significant!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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