Zhejiang Biyi Electric Appliance Co., Ltd.'s (SHSE:603215) largest shareholders are private companies who were rewarded as market cap surged CN¥373m last week

Key Insights

• The considerable ownership by private companies in Zhejiang Biyi Electric Appliance indicates that they collectively have a greater say in management and business strategy
• Biyi Group Co.,Ltd. owns 56% of the company
• 11% of Zhejiang Biyi Electric Appliance is held by Institutions

If you want to know who really controls Zhejiang Biyi Electric Appliance Co., Ltd. (SHSE:603215), 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 59% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by CN¥373m last week.

In the chart below, we zoom in on the different ownership groups of Zhejiang Biyi Electric Appliance.

Check out our latest analysis for Zhejiang Biyi Electric Appliance

What Does The Institutional Ownership Tell Us About Zhejiang Biyi Electric Appliance?

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.

Zhejiang Biyi Electric Appliance 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. 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 Zhejiang Biyi Electric Appliance's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Zhejiang Biyi Electric Appliance. Our data shows that Biyi Group Co.,Ltd. is the largest shareholder with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. Jiwang Wen is the second largest shareholder owning 5.9% of common stock, and Ningbo Biyi Enterprise Management Partnership Enterprise (Limited Partnership) holds about 3.6% of the company stock.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Zhejiang Biyi Electric Appliance

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own some shares in Zhejiang Biyi Electric Appliance Co., Ltd.. As individuals, the insiders collectively own CN¥176m worth of the CN¥2.9b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

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

Private Company Ownership

Our data indicates that Private Companies hold 59%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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. Take risks for example - Zhejiang Biyi Electric Appliance has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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.