Retail investors in Beijing Haitian Ruisheng Science Technology Ltd. (SHSE:688787) are its biggest bettors, and their bets paid off as stock gained 6.5% last week

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
• 51% of the business is held by the top 6 shareholders
• Insiders own 23% of Beijing Haitian Ruisheng Science Technology

A look at the shareholders of Beijing Haitian Ruisheng Science Technology Ltd. (SHSE:688787) can tell us which group is most powerful. With 39% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥433m last week.

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

Check out 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.

As you can see, institutional investors have a fair amount of stake in Beijing Haitian Ruisheng Science Technology. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

Beijing Haitian Ruisheng Science Technology is not owned by hedge funds. Lin He is currently the company's largest shareholder with 20% of shares outstanding. With 12% and 8.1% 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.

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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Beijing Haitian Ruisheng Science Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders maintain a significant holding in Beijing Haitian Ruisheng Science Technology Ltd.. Insiders own CN¥1.7b worth of shares in the CN¥7.1b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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

It seems that Private Companies own 30%, of the Beijing Haitian Ruisheng Science Technology stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Beijing Haitian Ruisheng Science Technology (of which 2 make us uncomfortable!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.