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Individual Investors Invested in Gold Cup Electric Apparatus Co.,Ltd. (SZSE:002533) Copped the Brunt of Last Week's CN¥411m Market Cap Decline

Simply Wall St ·  Sep 15, 2022 18:31

A look at the shareholders of Gold cup Electric Apparatus Co.,Ltd. (SZSE:002533) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 21% shares weren't spared from last week's CN¥411m market cap drop, individual investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Gold cup Electric ApparatusLtd, beginning with the chart below.

View our latest analysis for Gold cup Electric ApparatusLtd

ownership-breakdownSZSE:002533 Ownership Breakdown September 15th 2022

What Does The Institutional Ownership Tell Us About Gold cup Electric ApparatusLtd?

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.

Gold cup Electric ApparatusLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Gold cup Electric ApparatusLtd, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthSZSE:002533 Earnings and Revenue Growth September 15th 2022

Gold cup Electric ApparatusLtd is not owned by hedge funds. Shenzhen Yi Xiang Investment Development Co., Ltd. is currently the largest shareholder, with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.3% and 7.7%, of the shares outstanding, respectively. Zuqin Zhou, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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

Insider Ownership Of Gold cup Electric ApparatusLtd

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. 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.

Our information suggests that insiders maintain a significant holding in Gold cup Electric Apparatus Co.,Ltd.. It has a market capitalization of just CN¥4.8b, and insiders have CN¥1.0b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 46% 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

We can see that Private Companies own 20%, of the shares on issue. 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 Gold cup Electric ApparatusLtd is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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