Private companies among the biggest shareholders of Zheneng Jinjiang Environment Holding Company Limited (SGX: BWM) saw their holdings rise in value after shares jumped 11% last week

To get a sense of who actually controls Zheneng Jinjiang Environment Holding Company Limited (SGX: BWM), it is important to understand the ownership structure of the company. With 55% of the capital, private companies hold the maximum number of shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest score last week as the company reached a market cap of S $ 647 million after an 11% gain in the share.

Let’s take a closer look at each type of owner of Zheneng Jinjiang Environment Holding, starting with the table below.

Check out our latest analysis for Zheneng Jinjiang Environment Holding

Distribution of SGX ownership: BWM January 4, 2022

What does institutional ownership tell us about Zheneng Jinjiang Environment Holding?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Zheneng Jinjiang Environment Holding already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Zheneng Jinjiang Environment Holding’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
SGX: BWM Revenue and Revenue Growth January 4, 2022

Hedge funds don’t have a lot of shares in Zheneng Jinjiang Environment Holding. The main shareholder of the company is Zhejiang Provincial Energy Group Company Ltd., with a 30% stake. With 23% and 15% of the shares outstanding, respectively, Hangzhou Jinjiang Group Co., Ltd. and Harvest Fund Management Co., Ltd. are the second and third largest shareholders.

After digging a little deeper, we found that the top 2 shareholders collectively control over half of the company’s stock, implying that they have considerable power to influence company decisions.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. As far as we can tell, the company is not covered by analysts, so it probably goes unnoticed.

Insider property of Zheneng Jinjiang Environment Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own shares of Zheneng Jinjiang Environment Holding Company Limited. As individuals, the insiders collectively own S $ 8.0 million of the company S $ 647 million. It shows at least some alignment. You can click here to see if these insiders have bought or sold.

General public property

With an 11% stake, the general public, consisting mainly of individual investors, has some influence over Zheneng Jinjiang Environment Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.

Private shareholders

Private equity firms hold an 18% stake in Zheneng Jinjiang Environment Holding. This suggests that they can influence key policy decisions. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.

Owned by a private company

It appears that private companies own 55% of the shares of Zheneng Jinjiang Environment Holding. Private companies can be related parties. Sometimes, insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we discovered 3 warning signs for Zheneng Jinjiang Environment Holding (2 cannot be ignored!) Which you should be aware of before investing here.

Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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