Insiders with their considerable ownership were the key benefactors as Zhejiang Chunhui Intelligent Control Co., Ltd. (SZSE:300943) touches CN¥3.1b market cap

Key Insights

• Insiders appear to have a vested interest in Zhejiang Chunhui Intelligent Control's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 6 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Zhejiang Chunhui Intelligent Control Co., Ltd. (SZSE:300943), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 55% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CN¥284m last week.

In the chart below, we zoom in on the different ownership groups of Zhejiang Chunhui Intelligent Control.

Check out our latest analysis for Zhejiang Chunhui Intelligent Control

What Does The Lack Of Institutional Ownership Tell Us About Zhejiang Chunhui Intelligent Control?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Zhejiang Chunhui Intelligent Control might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Zhejiang Chunhui Intelligent Control. The company's largest shareholder is Guangyu Yang, with ownership of 40%. For context, the second largest shareholder holds about 3.8% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder. In addition, we found that Junbiao Yu, the CEO has 1.8% of the shares allocated to their name.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Zhejiang Chunhui Intelligent Control

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Zhejiang Chunhui Intelligent Control Co., Ltd.. This means they can collectively make decisions for the company. So they have a CN¥1.7b stake in this CN¥3.1b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 44% stake in Zhejiang Chunhui Intelligent Control. 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 Zhejiang Chunhui Intelligent Control better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Zhejiang Chunhui Intelligent Control (including 1 which shouldn't be ignored) .

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.

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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.