Stock Analysis

Hangzhou Star Shuaier Electric Appliance Co., Ltd.'s (SZSE:002860) 12% gain last week benefited both retail investors who own 48% as well as insiders

SZSE:002860
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Key Insights

Every investor in Hangzhou Star Shuaier Electric Appliance Co., Ltd. (SZSE:002860) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 12% increase in the stock price last week, retail investors profited the most, but insiders who own 36% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Hangzhou Star Shuaier Electric Appliance, beginning with the chart below.

View our latest analysis for Hangzhou Star Shuaier Electric Appliance

ownership-breakdown
SZSE:002860 Ownership Breakdown December 5th 2024

What Does The Institutional Ownership Tell Us About Hangzhou Star Shuaier Electric Appliance?

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 Hangzhou Star Shuaier Electric Appliance, 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
SZSE:002860 Earnings and Revenue Growth December 5th 2024

Hangzhou Star Shuaier Electric Appliance is not owned by hedge funds. The company's largest shareholder is Lijuan Chen, with ownership of 29%. Fuding Star Shuaier Investment Co., Ltd. is the second largest shareholder owning 13% of common stock, and Ling Qian holds about 1.8% of the company stock. In addition, we found that Yongwei Lou, the CEO has 0.6% of the shares allocated to their name.

After doing some more digging, we found that the top 16 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hangzhou Star Shuaier Electric Appliance

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.

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 a reasonable proportion of Hangzhou Star Shuaier Electric Appliance Co., Ltd.. Insiders own CN¥1.1b worth of shares in the CN¥3.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 48% 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 13%, 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:

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. For example, we've discovered 2 warning signs for Hangzhou Star Shuaier Electric Appliance that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Valuation is complex, but we're here to simplify it.

Discover if Hangzhou Star Shuaier Electric Appliance might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.