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Retail Investors Are Zoomlion Heavy Industry Science and Technology Co., Ltd.'s (SZSE:000157) Biggest Owners and Were Hit After Market Cap Dropped CN¥3.1b

Simply Wall St ·  10/25/2023 12:03

Key Insights

  • Significant control over Zoomlion Heavy Industry Science and Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
  • 50% of the business is held by the top 25 shareholders
  • Institutions own 14% of Zoomlion Heavy Industry Science and Technology

Every investor in Zoomlion Heavy Industry Science and Technology Co., Ltd. (SZSE:000157) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CN¥47b last week, retail investors would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Zoomlion Heavy Industry Science and Technology.

Check out our latest analysis for Zoomlion Heavy Industry Science and Technology

ownership-breakdown
SZSE:000157 Ownership Breakdown October 25th 2023

What Does The Institutional Ownership Tell Us About Zoomlion Heavy Industry Science 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.

Zoomlion Heavy Industry Science and Technology 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 Zoomlion Heavy Industry Science and Technology, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SZSE:000157 Earnings and Revenue Growth October 25th 2023

Zoomlion Heavy Industry Science and Technology is not owned by hedge funds. Our data shows that Hunan Xingxiang Investment Holding Group Co., Ltd. is the largest shareholder with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 9.9% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Zoomlion Heavy Industry Science and Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 data suggests that insiders own under 1% of Zoomlion Heavy Industry Science and Technology Co., Ltd. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥208m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zoomlion Heavy Industry Science and Technology. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 28%, 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. Be aware that Zoomlion Heavy Industry Science and Technology is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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