Key Insights

• The considerable ownership by private companies in Fortune Ng Fung Food (Hebei)Ltd indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 50% of the company
• 19% of Fortune Ng Fung Food (Hebei)Ltd is held by insiders

To get a sense of who is truly in control of Fortune Ng Fung Food (Hebei) Co.,Ltd (SHSE:600965), it is important to understand the ownership structure of the business. With 44% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, private companies endured the biggest losses as the stock fell by 7.8%.

Let's take a closer look to see what the different types of shareholders can tell us about Fortune Ng Fung Food (Hebei)Ltd.

See our latest analysis for Fortune Ng Fung Food (Hebei)Ltd

What Does The Lack Of Institutional Ownership Tell Us About Fortune Ng Fung Food (Hebei)Ltd?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Fortune Ng Fung Food (Hebei)Ltd, for yourself, below.

Hedge funds don't have many shares in Fortune Ng Fung Food (Hebei)Ltd. The company's largest shareholder is Fucheng Investment Group Co., Ltd., with ownership of 35%. Meanwhile, the second and third largest shareholders, hold 16% and 9.0%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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 Fortune Ng Fung Food (Hebei)Ltd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Fortune Ng Fung Food (Hebei) Co.,Ltd. Insiders have a CN¥912m stake in this CN¥4.7b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. 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 44%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fortune Ng Fung Food (Hebei)Ltd better, we need to consider many other factors. For instance, we've identified 3 warning signs for Fortune Ng Fung Food (Hebei)Ltd (2 shouldn't be ignored) that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.