Key Insights
- Significant control over Shenzhen Minkave Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
- 42% of the business is held by the top 14 shareholders
- 28% of Shenzhen Minkave Technology is held by insiders
A look at the shareholders of Shenzhen Minkave Technology Co., Ltd. (SZSE:300506) can tell us which group is most powerful. With 58% stake, retail 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.
Retail investors gained the most after market cap touched CN¥4.3b last week, while insiders who own 28% also benefitted.
Let's delve deeper into each type of owner of Shenzhen Minkave Technology, beginning with the chart below.
Check out our latest analysis for Shenzhen Minkave Technology
What Does The Institutional Ownership Tell Us About Shenzhen Minkave 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.
Institutions have a very small stake in Shenzhen Minkave Technology. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Shenzhen Minkave Technology. The company's CEO Zong Yu Cheng is the largest shareholder with 21% of shares outstanding. China General Technology (Group) Holding Co.,Ltd. is the second largest shareholder owning 11% of common stock, and Jing Shi Zhang holds about 2.9% of the company stock. Interestingly, the third-largest shareholder, Jing Shi Zhang is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
Our studies suggest that the top 14 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Shenzhen Minkave 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.
Our information suggests that insiders maintain a significant holding in Shenzhen Minkave Technology Co., Ltd.. Insiders own CN¥1.2b worth of shares in the CN¥4.3b company. 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, who are usually individual investors, hold a substantial 58% stake in Shenzhen Minkave Technology, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Company Ownership
It seems that Private Companies own 11%, of the Shenzhen Minkave Technology stock. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Shenzhen Minkave Technology better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Shenzhen Minkave Technology (at least 1 which is concerning) , and understanding them should be part of your investment process.
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.
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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.