Institutions along with individual investors who hold considerable shares inBeijing Hanyi Innovation Technology Co., Ltd. (SZSE:301270) come under pressure; lose 13% of holdings value

Key Insights

• The considerable ownership by individual investors in Beijing Hanyi Innovation Technology indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 13 shareholders
• 28% of Beijing Hanyi Innovation Technology is held by Institutions

To get a sense of who is truly in control of Beijing Hanyi Innovation Technology Co., Ltd. (SZSE:301270), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 37% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 28% came under pressure after market cap dropped to CN¥3.7b last week,individual investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Beijing Hanyi Innovation Technology.

Check out our latest analysis for Beijing Hanyi Innovation Technology

What Does The Institutional Ownership Tell Us About Beijing Hanyi Innovation Technology?

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.

We can see that Beijing Hanyi Innovation Technology does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Hanyi Innovation Technology's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Beijing Hanyi Innovation Technology. Looking at our data, we can see that the largest shareholder is Beijing Hanyi World Investment Center (Limited Partnership) with 17% of shares outstanding. Liqun Xie is the second largest shareholder owning 7.5% of common stock, and Yinhua Fund Management Co., Ltd. holds about 3.6% of the company stock. Liqun Xie, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. 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 Beijing Hanyi Innovation Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We can report that insiders do own shares in Beijing Hanyi Innovation Technology Co., Ltd.. It has a market capitalization of just CN¥3.7b, and insiders have CN¥274m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Beijing Hanyi Innovation Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 26%, of the Beijing Hanyi Innovation Technology stock. 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:

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 5 warning signs for Beijing Hanyi Innovation Technology (of which 3 are a bit concerning!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.