Stock Analysis
Kunshan Kinglai Hygienic Materials Co.,Ltd. (SZSE:300260) CEO Shuibo Li, the company's largest shareholder sees 5.9% reduction in holdings value
Key Insights
- Significant insider control over Kunshan Kinglai Hygienic MaterialsLtd implies vested interests in company growth
- 56% of the business is held by the top 4 shareholders
- 16% of Kunshan Kinglai Hygienic MaterialsLtd is held by Institutions
To get a sense of who is truly in control of Kunshan Kinglai Hygienic Materials Co.,Ltd. (SZSE:300260), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And last week, insiders endured the biggest losses as the stock fell by 5.9%.
Let's take a closer look to see what the different types of shareholders can tell us about Kunshan Kinglai Hygienic MaterialsLtd.
Check out our latest analysis for Kunshan Kinglai Hygienic MaterialsLtd
What Does The Institutional Ownership Tell Us About Kunshan Kinglai Hygienic MaterialsLtd?
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.
Kunshan Kinglai Hygienic MaterialsLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Kunshan Kinglai Hygienic MaterialsLtd, (below). Of course, keep in mind that there are other factors to consider, too.
Kunshan Kinglai Hygienic MaterialsLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Shuibo Li with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 17% and 6.9% of the stock. Interestingly, the third-largest shareholder, Baihua Li is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Kunshan Kinglai Hygienic MaterialsLtd
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.
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 the majority of Kunshan Kinglai Hygienic Materials Co.,Ltd.. This means they can collectively make decisions for the company. Given it has a market cap of CN¥9.6b, that means insiders have a whopping CN¥5.5b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kunshan Kinglai Hygienic MaterialsLtd. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Kunshan Kinglai Hygienic MaterialsLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Kunshan Kinglai Hygienic MaterialsLtd you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
About SZSE:300260
Kunshan Kinglai Hygienic MaterialsLtd
Kunshan Kinglai Hygienic Materials Co.,Ltd.