Suzhou Industrial Park Heshun Electric Co., Ltd.'s (SZSE:300141) market cap up CN¥282m last week, benefiting both individual investors who own 43% as well as insiders

Key Insights

• The considerable ownership by individual investors in Suzhou Industrial Park Heshun Electric indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 3 shareholders
• Insiders own 34% of Suzhou Industrial Park Heshun Electric

A look at the shareholders of Suzhou Industrial Park Heshun Electric Co., Ltd. (SZSE:300141) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While individual investors were the group that benefitted the most from last week’s CN¥282m market cap gain, insiders too had a 34% share in those profits.

In the chart below, we zoom in on the different ownership groups of 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?

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.

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. So if the company itself can improve over time, we may well see more institutional buyers in the future. 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.

Hedge funds don't have many shares in Suzhou Industrial Park Heshun Electric. With a 24% stake, CEO Jian Hua Yao is the largest shareholder. 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.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems insiders own a significant proportion of Suzhou Industrial Park Heshun Electric Co., Ltd.. It has a market capitalization of just CN¥2.3b, and insiders have CN¥775m 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

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Suzhou Industrial Park Heshun Electric. 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 20%, 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. Be aware that Suzhou Industrial Park Heshun Electric is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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.