Private companies in Shenzhen KSTAR Science and Technology Co., Ltd. (SZSE:002518) are its biggest bettors, and their bets paid off as stock gained 5.5% last week

Key Insights

• Shenzhen KSTAR Science and Technology's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 58% of the company is held by a single shareholder (Ningbo Kstar Venture Capital Partnership Enterprise (Limited Partnership))
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Shenzhen KSTAR Science and Technology Co., Ltd. (SZSE:002518), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 58% 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 were the biggest beneficiaries of last week’s 5.5% gain.

Let's delve deeper into each type of owner of Shenzhen KSTAR Science and Technology, beginning with the chart below.

Check out our latest analysis for Shenzhen KSTAR Science and Technology

What Does The Institutional Ownership Tell Us About Shenzhen KSTAR Science and Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Shenzhen KSTAR Science and Technology does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Shenzhen KSTAR Science and Technology's earnings history below. Of course, the future is what really matters.

Shenzhen KSTAR Science and Technology is not owned by hedge funds. Our data shows that Ningbo Kstar Venture Capital Partnership Enterprise (Limited Partnership) is the largest shareholder with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.6% and 0.8% of the shares outstanding respectively, Ling Liu and Manulife Asset Management are the second and third largest shareholders. Ling Liu, who is the second-largest shareholder, also happens to hold the title of Chief Administrative Officer.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shenzhen KSTAR Science and Technology

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 most recent data indicates that insiders own some shares in Shenzhen KSTAR Science and Technology Co., Ltd.. The insiders have a meaningful stake worth CN¥465m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Shenzhen KSTAR Science and Technology. 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

Our data indicates that Private Companies hold 58%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Shenzhen KSTAR Science and Technology you should be aware of, and 1 of them is a bit unpleasant.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.