Key Insights

• Significant control over Zhengyuan Geomatics GroupLtd by state or government implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is China Metallurgical Geology Bureau with a 50% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Zhengyuan Geomatics Group Co.,Ltd. (SHSE:688509) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are state or government with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, state or government collectively scored the highest last week as the company hit CN¥3.0b market cap following a 16% gain in the stock.

Let's delve deeper into each type of owner of Zhengyuan Geomatics GroupLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Zhengyuan Geomatics GroupLtd?

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.

Zhengyuan Geomatics GroupLtd 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Zhengyuan Geomatics GroupLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Zhengyuan Geomatics GroupLtd. Our data shows that China Metallurgical Geology Bureau is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.2% and 4.0% of the shares outstanding respectively, Zhongdixin Fund Investment (Sanming) Co., Ltd. and Yanjian Group Co., Ltd. are the second and third largest shareholders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Zhengyuan Geomatics GroupLtd

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Zhengyuan Geomatics GroupLtd. 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 Equity Ownership

With a stake of 5.2%, private equity firms could influence the Zhengyuan Geomatics GroupLtd board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 5.6%, of the Zhengyuan Geomatics GroupLtd 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Zhengyuan Geomatics GroupLtd (including 1 which is a bit concerning) .

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.