Kunshan Kinglai Hygienic Materials Co.,Ltd.'s (SZSE:300260) most bullish insider is CEO Shuibo Li, and their holdings value went up by 13% last week

Key Insights

• Kunshan Kinglai Hygienic MaterialsLtd's significant insider ownership suggests inherent interests in company's expansion
• The top 4 shareholders own 56% of the company
• Institutional ownership in Kunshan Kinglai Hygienic MaterialsLtd is 18%

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 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit CN¥10b market cap following a 13% gain in the stock.

Let's delve deeper into each type of owner of Kunshan Kinglai Hygienic MaterialsLtd, beginning with the chart below.

See 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.

Hedge funds don't have many shares in Kunshan Kinglai Hygienic MaterialsLtd. With a 25% stake, CEO Shuibo Li is the largest shareholder. For context, the second largest shareholder holds about 17% of the shares outstanding, followed by an ownership of 6.9% by the third-largest shareholder. 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.

Our research also brought to light the fact that roughly 56% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

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. 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.

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 own more than half of Kunshan Kinglai Hygienic Materials Co.,Ltd.. This gives them effective control of the company. Given it has a market cap of CN¥10b, that means insiders have a whopping CN¥6.0b 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

The general public, who are usually individual investors, hold a 24% stake in Kunshan Kinglai Hygienic MaterialsLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Kunshan Kinglai Hygienic MaterialsLtd .

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.