Key Insights
- Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 4 shareholders own 50% of the company
- Insider ownership in Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd is 25%
Every investor in Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co.,Ltd. (HKG:1349) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 15% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 25% stock also took a hit.
Let's take a closer look to see what the different types of shareholders can tell us about Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd.
See our latest analysis for Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd
What Does The Institutional Ownership Tell Us About Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd?
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.
Less than 5% of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd is not owned by hedge funds. Shanghai Pharmaceuticals Holding Co., Ltd is currently the company's largest shareholder with 20% of shares outstanding. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 7.5% by the third-largest shareholder. Additionally, the company's CEO Da Jun Zhao directly holds 1.5% of the total shares outstanding.
On looking further, we found that 50% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co.,Ltd.. Insiders have a HK$1.5b stake in this HK$6.0b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. 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
Private equity firms hold a 15% stake in Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd. This suggests they can be influential in key policy decisions. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Public Company Ownership
Public companies currently own 20% of Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd is showing 2 warning signs in our investment analysis , and 1 of those is concerning...
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.