Individual investors invested in Suzhou Industrial Park Heshun Electric Co., Ltd. (SZSE:300141) up 23% last week, insiders too were rewarded

Key Insights

• Significant control over Suzhou Industrial Park Heshun Electric by individual investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 3 shareholders
• Insider ownership in Suzhou Industrial Park Heshun Electric is 34%

To get a sense of who is truly in control of Suzhou Industrial Park Heshun Electric Co., Ltd. (SZSE:300141), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 43% 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 23% increase in the stock price last week, individual investors profited the most, but insiders who own 34% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Suzhou Industrial Park Heshun Electric.

See our latest analysis for Suzhou Industrial Park Heshun Electric

What Does The Institutional Ownership Tell Us About Suzhou Industrial Park Heshun Electric?

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.

Institutions have a very small stake in Suzhou Industrial Park Heshun Electric. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. 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.

Suzhou Industrial Park Heshun Electric is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Jian Hua Yao with 24% of shares outstanding. With 20% and 7.5% of the shares outstanding respectively, Suzhou Lvmai Electric Holdings (Group) Co., Ltd. and Xin Shen are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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 Suzhou Industrial Park Heshun Electric

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Suzhou Industrial Park Heshun Electric Co., Ltd.. Insiders have a CN¥830m stake in this CN¥2.4b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 20%, of the Suzhou Industrial Park Heshun Electric stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Industrial Park Heshun Electric better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Suzhou Industrial Park Heshun Electric you should be aware of.

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.

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.