Zhejiang Southeast Space Frame Co., Ltd.'s (SZSE:002135) biggest owners are retail investors who got richer after stock soared 12% last week

Key Insights

• Significant control over Zhejiang Southeast Space Frame by retail investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 12 shareholders
• Insiders own 12% of Zhejiang Southeast Space Frame

Every investor in Zhejiang Southeast Space Frame Co., Ltd. (SZSE:002135) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥534m last week.

In the chart below, we zoom in on the different ownership groups of Zhejiang Southeast Space Frame.

View our latest analysis for Zhejiang Southeast Space Frame

What Does The Institutional Ownership Tell Us About Zhejiang Southeast Space Frame?

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.

Since institutions own only a small portion of Zhejiang Southeast Space Frame, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Zhejiang Southeast Space Frame is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Zhejiang Southeast Space Frame Group Co.,Ltd. with 29% of shares outstanding. Hangzhou Haotian Property Management Co., Ltd. is the second largest shareholder owning 6.9% of common stock, and Mingming Guo holds about 5.7% of the company stock. Mingming Guo, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Chunxiang Xu is the owner of 1.7% of the company's shares.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 Zhejiang Southeast Space Frame

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.

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.

It seems insiders own a significant proportion of Zhejiang Southeast Space Frame Co., Ltd.. It has a market capitalization of just CN¥5.1b, and insiders have CN¥591m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 49% 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 36%, of the shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Zhejiang Southeast Space Frame is showing 3 warning signs in our investment analysis , and 2 of those are significant...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.