Key findings

• The significant involvement of individual investors in Zhejiang Huace Film & TV suggests that key decisions are influenced by shareholders from the general public
• A total of 8 investors own the majority of the company with 50% each
• Insiders own 23% of Zhejiang Huace Film & TV

If you want to know who really controls Zhejiang Huace Film & TV Co., Ltd. (SZSE:300133), you need to look at the composition of its share registry. We can see that individual investors own the lion’s share of the company at 42%. In other words, the group stands to gain (or lose) the most from their investment in the company.

After the share price fell 5.2 percent last week, retail investors suffered the biggest losses, but insiders, who own 23 percent of the shares, also took a hit.

Let’s take a closer look at what the different types of shareholders can tell us about Zhejiang Huace Film & TV.

Check out our latest analysis for Zhejiang Huace Film & TV

What does institutional ownership tell us about Zhejiang Huace Film & TV?

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 share of Zhejiang Huace Film & TV. This means that the analysts at those institutions have looked at the stock and they like it. But, like anyone else, they can be wrong. It’s not unusual for the share price to fall sharply if two large institutional investors try to sell out of a stock at the same time, so it’s worth checking out Zhejiang Huace Film & TV’s past earnings history (see below). Of course, remember that there are other factors to consider too.

Zhejiang Huace Film & TV is not owned by hedge funds. According to our data, Mei Cheng Fu is the largest shareholder with 20% of outstanding shares. The second and third largest shareholders hold 17% and 4.7% of outstanding shares, respectively.

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

While studying institutional ownership of a company can enrich your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are a considerable number of analysts covering the stock, so it could be useful to find out their overall view on the future.

Insider ownership of Zhejiang Huace Film & TV

The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and covers at least board members. Corporate management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

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 a significant amount of Zhejiang Huace Film & TV Co., Ltd. The market capitalization is just 10 billion Chinese yen, and insiders own 2.4 billion Chinese yen worth of shares in their own names. That’s pretty significant. Most would say that shows a high level of alignment with shareholders, especially at a company of this size. Click here to see if those insiders have been buying or selling.

Public property

The general public – including retail investors – owns 42% of the company’s shares and therefore cannot be easily ignored. Even if this size of ownership is not enough to sway a political decision in their favor, they can still collectively influence company policy.

Private company ownership

It appears that private companies own 22% of Zhejiang Huace Film & TV shares. This might be worth investigating 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:

While it is worth considering the different groups that own a company, there are other factors that are even more important. Note that Zhejiang Huace Film & TV 3 warning signals in our investment analysis you should know about…

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the 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.