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Anhui Truchum Advanced Materials and Technology Co., Ltd.'s (SZSE:002171) Biggest Owners Are Individual Investors Who Got Richer After Stock Soared 5.5% Last Week

Simply Wall St ·  Sep 10, 2022 20:50

If you want to know who really controls Anhui Truchum Advanced Materials and Technology Co., Ltd. (SZSE:002171), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors were the biggest beneficiaries of last week's 5.5% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Anhui Truchum Advanced Materials and Technology.

See our latest analysis for Anhui Truchum Advanced Materials and Technology

ownership-breakdownSZSE:002171 Ownership Breakdown September 11th 2022

What Does The Institutional Ownership Tell Us About Anhui Truchum Advanced Materials and Technology?

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.

We can see that Anhui Truchum Advanced Materials and Technology does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Anhui Truchum Advanced Materials and Technology, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthSZSE:002171 Earnings and Revenue Growth September 11th 2022

Hedge funds don't have many shares in Anhui Truchum Advanced Materials and Technology. Looking at our data, we can see that the largest shareholder is Anhui TRUCHUM Investment Group Co., Ltd. with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.2% and 5.0%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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

Insider Ownership Of Anhui Truchum Advanced Materials and Technology

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.

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 Anhui Truchum Advanced Materials and Technology Co., Ltd.. The insiders have a meaningful stake worth CN¥1.0b. 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, who are usually individual investors, hold a 42% stake in Anhui Truchum Advanced Materials and Technology. 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

With an ownership of 5.2%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

It seems that Private Companies own 34%, of the Anhui Truchum Advanced Materials and Technology 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.

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. Be aware that Anhui Truchum Advanced Materials and Technology is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

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.

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