Key Insights

• SDIC Intelligence Xiamen Information's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 6 investors have a majority stake in the company with 50% ownership
• Insiders own 29% of SDIC Intelligence Xiamen Information

If you want to know who really controls SDIC Intelligence Xiamen Information Co., Ltd. (SZSE:300188), 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 investors with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders, who own 29% shares weren't spared from last week's CN¥378m market cap drop, individual investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of SDIC Intelligence Xiamen Information.

What Does The Institutional Ownership Tell Us About SDIC Intelligence Xiamen Information?

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.

SDIC Intelligence Xiamen Information already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SDIC Intelligence Xiamen Information's historic earnings and revenue below, but keep in mind there's always more to the story.

SDIC Intelligence Xiamen Information is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is State Development & Investment Corp., Ltd. with 21% of shares outstanding. Yongfang Guo is the second largest shareholder owning 15% of common stock, and Guolin Li holds about 7.5% of the company stock. Guolin Li, who is the third-largest shareholder, also happens to hold the title of Member of Corporate Board.

We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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

Insider Ownership Of SDIC Intelligence Xiamen Information

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.

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 SDIC Intelligence Xiamen Information Co., Ltd.. It is very interesting to see that insiders have a meaningful CN¥3.2b stake in this CN¥11b 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 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SDIC Intelligence Xiamen Information. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for SDIC Intelligence Xiamen Information that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.