Public companies are L&K Engineering (Suzhou) Co.,Ltd.'s (SHSE:603929) biggest owners and were rewarded after market cap rose by CN¥397m last week

Key Insights

• The considerable ownership by public companies in L&K Engineering (Suzhou)Ltd indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is L&K Engineering Co., Ltd. with a 54% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of L&K Engineering (Suzhou) Co.,Ltd. (SHSE:603929) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 7.6% gain.

Let's delve deeper into each type of owner of L&K Engineering (Suzhou)Ltd, beginning with the chart below.

View our latest analysis for L&K Engineering (Suzhou)Ltd

What Does The Institutional Ownership Tell Us About L&K Engineering (Suzhou)Ltd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of L&K Engineering (Suzhou)Ltd 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. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. 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.

Hedge funds don't have many shares in L&K Engineering (Suzhou)Ltd. Looking at our data, we can see that the largest shareholder is L&K Engineering Co., Ltd. with 54% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 6.0% and 5.0% of the shares outstanding respectively, Jun Gu Xin and Wellmax Holdings Limited are the second and third largest shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of L&K Engineering (Suzhou)Ltd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in L&K Engineering (Suzhou) Co.,Ltd.. It has a market capitalization of just CN¥5.4b, and insiders have CN¥482m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% 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 Company Ownership

We can see that Private Companies own 5.0%, 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.

Public Company Ownership

We can see that public companies hold 54% of the L&K Engineering (Suzhou)Ltd shares on issue. 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. For example, we've discovered 1 warning sign for L&K Engineering (Suzhou)Ltd 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.

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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.