Key findings

• The significant control of private companies over Juewei Food means that the public has more influence on management and governance-related decisions
• A total of 7 investors own the majority of the company with 51%
• The institutional share in Juewei Food is 15%

A look at the shareholders of Juewei Food Co., Ltd. (SHSE:603517) tells us which group is the most powerful. And the group that holds the biggest piece of the pie is Private Companies, with a 47% share. In other words, the group stands to gain the most (or lose the most) from their investment in the company.

As a result, private companies as a group suffered the highest losses last week, with their market capitalization falling by CNY 1.3 billion.

In the table below we zoom in on the different ownership groups of Juewei Food.

Check out our latest analysis for Juewei Food

What does institutional ownership tell us about Juewei Food?

Many institutions measure their performance against an index that is similar to the local market, so they tend to pay more attention to companies listed in major indices.

As you can see, institutional investors own a sizeable stake in Juewei Food. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. They too are sometimes wrong. If multiple institutions change their minds on a stock at the same time, the share price can fall quickly. It is therefore worth taking a look at Juewei Food’s earnings history below. Of course, the future is what really matters.

Juewei Food is not owned by hedge funds. Shanghai Jucheng Enterprise Development Partnership Enterprise (Limited Partnership) is currently the company’s largest shareholder, with 33% of outstanding shares. For comparison, the second and third largest shareholders hold about 7.9% and 2.7% of the shares, respectively.

Upon closer inspection, we found that more than half of the company’s shares are owned by the top seven shareholders, suggesting that the interests of the larger shareholders are balanced to some extent by those of the smaller shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you can look at forecasted growth quite easily.

Insider ownership of Juewei Food

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately accountable to the board. However, it is not uncommon for managers to be board members, especially if they are a founder or CEO.

Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.

Our latest data shows that insiders own less than 1% of Juewei Food Co., Ltd. However, it is possible that insiders have indirect interests through a more complex structure. Consider that this is a large company and the insiders own CNY66m worth of shares. Absolute value might be more important than proportional share. It’s good to see board members own shares, but it might be worth checking to see if those insiders have been buying.

Public property

The general public – including retail investors – owns 36% of the company’s shares and therefore cannot be ignored. While this group does not necessarily call the shots, it can certainly have a real influence on how the company is run.

Private company ownership

We can see that private companies own 47% of the shares issued. It might be worth investigating this further. If related parties, such as insiders, have an interest in one of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to study who exactly owns a company. But to gain real insights, we also need to consider other information. Think, for example, of risks. Every company has them, and we have found that 1 warning sign for Juewei Food You should know about this.

But ultimately It is the futurenot the past, will determine how well the owners of this company will perform, so we think it wise to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.