Key Insights

• The considerable ownership by public companies in Tangshan Jidong CementLtd indicates that they collectively have a greater say in management and business strategy
• 62% of the company is held by a single shareholder (BBMG Corporation)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Tangshan Jidong Cement Co.,Ltd. (SZSE:000401), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 64% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 3.1% decline in share price, public companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Tangshan Jidong CementLtd.

What Does The Institutional Ownership Tell Us About Tangshan Jidong CementLtd?

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 Tangshan Jidong CementLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Tangshan Jidong CementLtd's earnings history below. Of course, the future is what really matters.

Tangshan Jidong CementLtd is not owned by hedge funds. Our data shows that BBMG Corporation is the largest shareholder with 62% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are China National Building Material Company Limited and Cinda Capital Management Co., Ltd., with an equal amount of shares to their name at 1.7%.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Tangshan Jidong CementLtd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Tangshan Jidong Cement Co.,Ltd. insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it's a big company, and the insiders own CN¥10k worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 28% 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.

Public Company Ownership

It appears to us that public companies own 64% of Tangshan Jidong CementLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Tangshan Jidong CementLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Tangshan Jidong CementLtd that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.