Private companies among Hang Zhou Radical Energy-Saving Technology Co., Ltd.'s (SZSE:300652) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by private companies in Hang Zhou Radical Energy-Saving Technology indicates that they collectively have a greater say in management and business strategy
• A total of 3 investors have a majority stake in the company with 58% ownership
• 14% of Hang Zhou Radical Energy-Saving Technology is held by insiders

Every investor in Hang Zhou Radical Energy-Saving Technology Co., Ltd. (SZSE:300652) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥2.5b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Hang Zhou Radical Energy-Saving Technology, beginning with the chart below.

View our latest analysis for Hang Zhou Radical Energy-Saving Technology

What Does The Institutional Ownership Tell Us About Hang Zhou Radical Energy-Saving Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Hang Zhou Radical Energy-Saving Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Hang Zhou Radical Energy-Saving Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Hang Zhou Radical Energy-Saving Technology. Beijing Kejian Holding Partnership Enterprise (Limited Partnership) is currently the company's largest shareholder with 29% of shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 8.9% of the stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Hang Zhou Radical Energy-Saving Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Hang Zhou Radical Energy-Saving Technology Co., Ltd.. Insiders own CN¥345m worth of shares in the CN¥2.5b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hang Zhou Radical Energy-Saving Technology. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 42%, of the Hang Zhou Radical Energy-Saving Technology stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hang Zhou Radical Energy-Saving Technology better, we need to consider many other factors. For example, we've discovered 2 warning signs for Hang Zhou Radical Energy-Saving Technology that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.