Key Insights

• Significant insider control over Inner Mongolia Junzheng Energy & Chemical GroupLtd implies vested interests in company growth
• The top 2 shareholders own 53% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd. (SHSE:601216), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥1.1b last week.

Let's delve deeper into each type of owner of Inner Mongolia Junzheng Energy & Chemical GroupLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Inner Mongolia Junzheng Energy & Chemical GroupLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Inner Mongolia Junzheng Energy & Chemical GroupLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Inner Mongolia Junzheng Energy & Chemical GroupLtd's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Inner Mongolia Junzheng Energy & Chemical GroupLtd. Our data shows that Jiangtao Du is the largest shareholder with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 21% and 9.1% of the stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Inner Mongolia Junzheng Energy & Chemical GroupLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Inner Mongolia Junzheng Energy & Chemical Group Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥13b stake in this CN¥32b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Inner Mongolia Junzheng Energy & Chemical 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 Company Ownership

We can see that Private Companies own 21%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Case in point: We've spotted 1 warning sign for Inner Mongolia Junzheng Energy & Chemical GroupLtd you should be aware of.

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.

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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.