Retail investors among Beijing Haitian Ruisheng Science Technology Ltd.'s (SHSE:688787) largest stockholders and were hit after last week's 10% price drop

Key Insights

• The considerable ownership by retail investors in Beijing Haitian Ruisheng Science Technology indicates that they collectively have a greater say in management and business strategy
• A total of 6 investors have a majority stake in the company with 51% ownership
• Insiders own 23% of Beijing Haitian Ruisheng Science Technology

To get a sense of who is truly in control of Beijing Haitian Ruisheng Science Technology Ltd. (SHSE:688787), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 33% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors as a group endured the highest losses last week after market cap fell by CN¥358m.

Let's delve deeper into each type of owner of Beijing Haitian Ruisheng Science Technology, beginning with the chart below.

See our latest analysis for Beijing Haitian Ruisheng Science Technology

What Does The Institutional Ownership Tell Us About Beijing Haitian Ruisheng Science Technology?

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.

We can see that Beijing Haitian Ruisheng Science Technology does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Beijing Haitian Ruisheng Science Technology's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Beijing Haitian Ruisheng Science Technology. Looking at our data, we can see that the largest shareholder is Lin He with 20% of shares outstanding. With 11% and 8.0% of the shares outstanding respectively, Beijing Zhongruian Investment Center (Limited Partnership) and China Mobile Communications Group Co., Ltd. are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Beijing Haitian Ruisheng Science Technology

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of Beijing Haitian Ruisheng Science Technology Ltd.. Insiders have a CN¥800m stake in this CN¥3.4b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 33% stake in Beijing Haitian Ruisheng Science Technology. 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

Our data indicates that Private Companies hold 28%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Beijing Haitian Ruisheng Science Technology better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Beijing Haitian Ruisheng Science Technology you should be aware of, and 1 of them is potentially serious.

Of course this may not be the best stock to buy. So take a peek at this free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com