Retail investors among Hunan Baili Engineering Sci&Tech Co.,Ltd's (SHSE:603959) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by retail investors in Hunan Baili Engineering Sci&TechLtd indicates that they collectively have a greater say in management and business strategy
• The top 16 shareholders own 46% of the company
• 14% of Hunan Baili Engineering Sci&TechLtd is held by Institutions

To get a sense of who is truly in control of Hunan Baili Engineering Sci&Tech Co.,Ltd (SHSE:603959), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit CN¥834m market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of Hunan Baili Engineering Sci&TechLtd, beginning with the chart below.

See our latest analysis for Hunan Baili Engineering Sci&TechLtd

What Does The Institutional Ownership Tell Us About Hunan Baili Engineering Sci&TechLtd?

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.

Hunan Baili Engineering Sci&TechLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Hunan Baili Engineering Sci&TechLtd's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Hunan Baili Engineering Sci&TechLtd. Our data shows that Hunan Haixin Investment Co., Ltd. is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.0% and 2.4% of the stock.

On studying our ownership data, we found that 16 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Hunan Baili Engineering Sci&TechLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Hunan Baili Engineering Sci&Tech Co.,Ltd. As individuals, the insiders collectively own CN¥15m worth of the CN¥834m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 54% of Hunan Baili Engineering Sci&TechLtd shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With an ownership of 30%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Hunan Baili Engineering Sci&TechLtd .

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.

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